In May 2025, President Trump announced new tariffs that are expected to be a significant source of revenue for the federal budget and trigger concerns in financial markets.
Tariffs to Bolster Revenue and Address Opioid Crisis
President Trump introduced a set of new tariffs in early April, imposing a 10% tariff on all imports and a 20% tariff on goods from China. The main goal of these measures is to combat the crisis related to synthetic opioids. These tariffs have resulted in a considerable increase in customs revenue, marking the largest increase in tax income since 1993.
Financial Implications and Market Response
Markets have remained relatively muted in their response to these changes, though historical data suggests that tariff policies can lead to increased volatility. Increases in tariffs are expected to result in higher consumer prices and a potential decline in GDP. The Federal Reserve has yet to comment on the proposal to lower interest rates.
Impact on Cryptocurrency Market and Other Assets
CoinMarketCap data shows Ethereum (ETH) currently valued at $1,837.58, with trading volumes declining by 15.80% over the past 24 hours. The concerns surrounding the new tariffs may impact risk assets, including cryptocurrencies, as historical tariff actions typically lead to changes in monetary expectations.
Trump's new tariffs have created significant economic effects, potentially leading to shifts in both traditional and digital financial markets.
