Michaela
Summary: How might Trump’s new tariffs impact the crypto market?
The tariffs could raise costs for producing and distributing key crypto hardware like mining equipment due to supply chain disruptions. This may cause price volatility and affect the availability of technology needed for crypto transactions. Additionally, encouraging domestic manufacturing could slow innovation and increase expenses in the short term.
President Donald Trump has signed an executive order imposing sweeping new tariffs on nearly all imported goods, signaling a hardline return to protectionist trade policy.
“Tariffs are making America GREAT [and] RICH again,” President Trump wrote in a post on his social media platform Truth Social. On Thursday, President Trump signed the executive order that is scheduled to go into effect on August 7, covering 68 countries.
In his Truth Social post, President Trump stated that the tariffs have made America the “hottest” country, contrasting this with his claim that a year ago the nation was a “dead country,” which he attributed to tariffs imposed on the United States.
The executive order maintains a baseline tariff of 10 percent on imports from countries with which the United States holds a trade surplus, reflecting the administration’s ongoing trade strategy.
Furthermore, the executive order puts into effect a 15 percent tariff rate that President Trump secured in talks with key partners like the European Union, South Korea, and Japan. Meanwhile, tentative deals with countries including the Philippines, Vietnam, and Indonesia have set their tariffs in the range of 19 to 20 percent.
Several smaller economies are now subject to increased tariff rates, while major trading partners have also experienced substantial hikes. Notably, Canada, a key U.S. trading partner, saw its tariff rate rise from 25 to 35 percent on certain goods. This move indicates that President Trump may be targeting countries he views as falling short in providing sufficient trade concessions since his initial announcement of reciprocal tariffs.
How Could the Trump Tariff Affect the Crypto Market?
The recent tariff increases announced by President Trump could have notable ripple effects on the crypto market and its participants. Higher tariffs on goods from major trading partners, such as Canada, and elevated rates for countries like the Philippines, Vietnam, and Indonesia, may contribute to increased costs in global supply chains.
These disruptions can affect the production and distribution of hardware crucial to the crypto ecosystem, including mining equipment and blockchain infrastructure components.
For crypto holders and investors, this means potential volatility as supply chain uncertainties influence the availability and price of technology critical to mining and transactions. Additionally, the administration’s focus on strengthening domestic manufacturing, encouraging companies to build and produce on American soil to avoid tariffs, could shift where crypto-related hardware is produced, possibly increasing costs or slowing innovation in the short term.
Moreover, the tariffs reflect a broader strategy to protect American economic and national security interests by addressing imbalanced trade relationships. While this may boost certain sectors of the U.S. economy, the crypto market, which relies heavily on global cooperation and technology imports, might face increased friction.
Read More
- Chinese Bitcoin Hardware Giants Build U.S. Factories to Bypass Tariffs
- India and US Near 10% Tariff Deal Ahead of Trump’s July 9 Deadline
- Trump Floats Major Tariff Cuts, But Beijing Isn’t Buying It
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
