Trade War Escalation Rocks Global Markets—Here’s What’s at Stake
Tariffs are back with a vengeance—and markets are feeling the heat.
The domino effect no one wanted
Supply chains groan as governments double down on protectionist policies. Exporters scramble while importers pass costs to consumers already choking on inflation.
Who blinks first?
Wall Street hedges, Main Street sweats, and crypto traders ironically cheer as capital flees to decentralized alternatives. (Goldman analysts still claim it’s a ‘hedge against volatility’—sure, Jan.)
One thing’s clear: when elephants fight, the grass gets trampled. And right now, everyone’s feeling the stomp.
$108,047 to remain below $108,000. So, what does the future hold for cryptocurrencies?
ContentsUS Unveils Tariff PlansThe Future of Cryptocurrencies
US Unveils Tariff Plans
In April, President TRUMP announced shocking tariff rates, including a 46% tariff on Vietnam and 24% on Japan. As of now, Vietnam, after securing a trade agreement, has reduced its rate to 20%. Conversely, Japan, having failed to reach an agreement, faces a 25% tariff on all products starting August 1st.
The Vietnam agreement last week was seen as hopeful. However, the tariffs announced on July 7 signal sustained high rates. The stock market experienced declines due to tariff rates reaching up to 40%. Concerns are mounting about a prolonged downturn, especially as the market drops from its all-time high (ATH).
Following Elon Musk’s announcement of founding a political party, Tesla’s shares plummeted by 7%, exacerbating the market’s decline amidst uncertainties regarding the company’s future.
Moreover, President Trump threatened additional tariffs on nations aligning with “anti-American BRICS policies,” shaking emerging markets. Countries like Malaysia and Kazakhstan will face a 25% tariff, South Africa 30%, and both Laos and Myanmar 40%. WHITE House Press Secretary Leavitt indicated that more countries would receive tariff notifications, unsettling investors further.
The Future of Cryptocurrencies
The European Union has yet to finalize its stance. EU sources suggest negotiations are ongoing and a preliminary agreement might be reached this week. However, official moderate announcements are necessary beyond the unnamed sources. If the process results in a tariff letter for the EU, new projections will be crafted to assess impacts on inflation.
This week, decisions on rates for all countries are expected. Consequently, the Federal Reserve will have sufficient data to evaluate the effect of tariffs on inflation, paving the way for more realistic roadmaps for potential rate cuts and providing markets a clearer outlook.
In summary, the situation isn’t great at the moment. Nevertheless, while sustained high rates are slightly lower than in April for some countries, they generally remain similar. The outcome of EU discussions will be crucial, given the trade volume between the two regions.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.