Trump’s Equal Tariff Policy Sparks Global Trade Concerns and Crypto Market Reactions – Coincu

President Trump’s new tariff policy targets 90 nations, potentially impacting global markets.

This policy aims at countries imposing restrictive trade conditions, threatening economic stability.

Trump’s Tariff Policy Targets 90 Nations with Up to 49% Rates

The equal tariff policy, referred to by President Donald Trump as “Reciprocal,” introduces tariffs aiming at nations imposing restrictive trade conditions. Countries like China face over 60% due to additional levies. Changes include potential shifts in manufacturing costs and trade routes, influencing global stock markets. Economists caution prolonged tariffs could initiate recessions, severely impacting both domestic and global economies.

Market responses vary, with some nations promising retaliatory actions. Analysts suggest this policy could influence cryptocurrency prices. Enmanuel Cardozo highlights potential Bitcoin movements amid macroeconomic uncertainty.

Mark Zandi, Chief Economist at Moody’s Analytics, is quoted saying: “Prolonged implementation could lead to serious recessions for both the U.S. and impacted trade partners.”

Bitcoin Faces 19.83% Drop Amid Protectionist Tariff Concerns

Did you know? The tariff policy mirrors protectionist measures from the early 1980s, which realigned global supply chains significantly. Cryptocurrencies like Bitcoin may see similar increased demand due to rising macroeconomic risk.

Bitcoin (BTC) is currently priced at $75,430.23, with a market cap of $1.50 trillion and a market dominance of 62.73%, according to CoinMarketCap. The cryptocurrency saw a 5.54% decline over the past 24 hours, amidst a 39.56% drop in trading volume. Over the last 90 days, Bitcoin experienced a 19.83% decrease in value.

Analysts from Coincu predict regulatory reviews may intensify, especially concerning how cryptos could hedge against trade risk. Past trends suggest that protectionist policies might bolster asset diversification. These factors are integral to understanding future financial landscapes. Ongoing discussions in crypto forums indicate concerns over potential systemic economic risks and opportunities for DeFi to act as a hedge: ChainCatcher.