Trump Tariff Gambit: How Could It Affect the Crypto Market
President Donald Trump's sweeping new tariffs on imported goods mark a sharp return to protectionist trade policies. The executive order, set to take effect August 7, imposes baseline tariffs of 10% on surplus-trade partners and hikes rates to 15-20% for key allies like the EU and Japan.
While the announcement conspicuously avoids mentioning digital assets, the move could ripple through crypto markets. Tariff-induced dollar volatility often drives investors toward Bitcoin as a hedge, while trade friction may accelerate cross-border crypto settlements.
The policy risks creating headwinds for mining operations reliant on imported hardware. However, it may simultaneously boost demand for decentralized finance protocols as traditional trade finance channels face new friction.