The ongoing trade conflict led by former President Donald Trump is creating considerable turbulence in markets, including the cryptocurrency sector. Trump's strategy is marked by a hardline approach and a focus on American industry.
Key Strategies of Trump
Trump imposes additional tariffs even on countries with existing free trade agreements. These tariffs are typically announced before discussions begin, exerting pressure for negotiations. Europe and Japan are prominently involved in this strategy.
Approach Toward Japan
In negotiations with Japan, Trump shows little flexibility, insisting on mutual tariffs. Recent discussions highlighted Japanese Prime Minister Ishiba’s commitment to invest $1 trillion in the U.S., while Trump emphasizes upcoming tariffs and calls for equitable trade.
Consequences of Trade Policy
Trump’s trade policies lead to increased economic pressures on trade partners, a potential slowdown in cryptocurrency market activity, and heightened tensions in international trade. Such actions spark interest in long-term defense spending by allied nations and concerns about the sustainability of free trade agreements.
Market observers are closely watching these developments, aware that further negotiations and tariff implementations could lead to increased volatility in the economic environment.
