The latest tariff escalation by U.S. President Donald Trump has shaken Wall Street, and the ripple effects are hitting Bitcoin’s price.
Goldman Sachs has revised its GDP growth forecast down to 1.5% for the U.S., from 2.0%, while projecting inflation could rise to 3.5% instead of the previous 3.0% estimate. Despite these concerns, the financial firm is expecting rate cuts to come sooner than anticipated, potentially providing some relief.
Impact of Tariffs on Global Trade
The tariff situation is heating up, with Trump’s “reciprocal tariff” week marking a significant escalation. On April 2, 20% tariffs will be imposed on imports from over 25 countries, expected to impact $1.5 trillion worth of goods by the end of April 2025. Canada has already announced reciprocal tariffs on $21 billion of U.S. goods, while China has imposed 10-15% tariffs on U.S. agricultural exports. The European Union and Mexico are also preparing retaliatory measures, further contributing to global economic uncertainty.
What About Bitcoin?
Bitcoin (BTC) has wrapped up its worst Q1 performance since 2018, and analysts are warning the challenges may not be over. Goldman Sachs has shifted its outlook on the U.S. economy, now predicting more Fed and ECB rate cuts.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/goldman-sachs-predicts-u-s-economic-slowdown-what-about-bitcoin/