The tariff war initiated by President Trump is significantly impacting financial markets and the cryptocurrency sector. With tariffs on Chinese goods reaching up to 125%, the consequences are becoming evident.
A Global Tariff War
Tariffs were announced during Trump's presidential campaign, but their implementation shocked financial markets. According to the Binance report, a global trade war has ignited fear and uncertainty, negatively affecting markets.
Markets and Country Responses
April 2 marked 'Liberation Day', when new tariffs came into effect. Stocks dropped 10% in just three days. Countries showed mixed reactions—some threatened retaliatory measures while others called for negotiations. Approximate tariffs: China—54%, European Union—20%, Japan—24%, Vietnam—46%, and auto imports—25%.
Why Did Trump Initiate Tariffs?
There are two main reasons for the tariffs. Firstly, there is $9.2 trillion of U.S. debt and Trump's desire to lower interest rates on 10-year bonds. Secondly, there are Trump's personal interests in real estate that require lower rates to improve his financial situation.
The tariff war initiated by Trump significantly influences financial markets and cryptocurrencies. Uncertainty and rate volatility create risks for both the U.S. economy and the global financial systems.
