US President Donald Trump announced an increase in tariffs on global imports to 15 percent, up from the previous 10 percent. This move comes despite the US Supreme Court ruling earlier trade measures illegal and invalid. The Trump administration has nonetheless enforced stricter trade policies with the new tariffs. These trade restrictions risk escalating tensions in the global economy, as higher import taxes could disrupt international trade. Particularly, the technology and manufacturing sectors may face increased inflation and supply chain interruptions. Financial markets in the US and worldwide reacted swiftly, leading to a decline in the prices of Bitcoin and several other cryptocurrencies. Bitcoin, often seen as a safe haven during financial instability, weakened amid growing trade tensions and global market uncertainty. Cryptocurrencies typically experience volatility in response to traditional financial and economic policies, prompting investors to adopt a cautious stance. Analysts warn that further tariff hikes or escalating trade conflicts could negatively impact cryptocurrencies and global stock markets. Given the ongoing uncertainty in the international trade environment, market fluctuations are expected to continue. This situation highlights that global trade policies significantly affect not only traditional economies but also digital currency markets, requiring investors to closely monitor these developments to mitigate potential risks.
Source: coindesk
