Trade Policy Uncertainty Delays Rate Cut as Tariff Deadline Looms

Federal Reserve Chair Jerome Powell cited trade policy uncertainties as a key factor in delaying anticipated rate cuts, with critical tariff deadlines approaching. The 90-day pause on most of Trump's 'Liberation Day' tariffs expires July 9, creating market volatility across asset classes including cryptocurrencies.

EU negotiators have reportedly offered concessions on pharmaceuticals, alcohol, semiconductors and commercial aircrafts, while Canada abandoned its digital services tax proposal to facilitate a deal with the US. These developments suggest potential relief for tech-focused crypto projects dependent on global semiconductor supply chains.

Notably absent from the July 9 deadline is China, which maintains a separate tariff truce with the US until August 9. The bifurcated timeline creates asymmetric risks for blockchain projects with heavy Asian exposure versus those focused on Western markets.