Donald Trump's trade policies and the introduction of tariffs on imports from various countries have sparked significant discussions in both economic and cryptocurrency circles.
Tariff Increase and Global Economy
Recent tariff measures introduced by Trump's administration included a 25% tariff on goods from Canada and Mexico, along with a 10% duty on Chinese imports. These moves prompted retaliatory measures by Canada and Mexico and the threat of lawsuits from China. With the US involved in approximately $1.6 trillion of trade with these countries, the situation is critical for the global economy. Experts fear that such measures could lead to a slowdown in global trade growth.
Impact of Tariffs on Cryptocurrencies
Historically, cryptocurrency markets have been sensitive to global economic events. The announcement of new tariffs caused a dip in prices of major cryptocurrencies like Bitcoin and Ethereum. Bitcoin fell from its peak in January 2025 to $91,000, while Ethereum dropped to its lowest level since September 2024 at $2,320. Caroline Bowler, CEO of BTC Markets, noted that 'Trump’s tariff war is impacting the whole market.'
Investor Sentiment and Role of Meme Coins
With growing economic instability, many investors are moving away from risky assets, which is particularly evident in the decline of meme coins such as Dogecoin. These tokens remain indicators of investor sentiment, with their decline signaling a reduced interest in high-risk investments. Jeff Park, head of alpha strategies at Bitwise Asset Management, believes that a prolonged trade war could drive interest in cryptocurrencies as alternative assets.
Donald Trump's trade wars continue to cause significant uncertainty, affecting both global economic development and cryptocurrency markets. The further development of events could influence investor strategies, which is especially important to consider in the context of a volatile global economy.
