Lawmakers Challenge Trump’s China Trade Deal Tariff Powers

Bipartisan lawmakers are striving to reclaim congressional authority on tariffs from President Trump as part of a larger effort involving key players like Senator Chuck Grassley and Rep. Don Bacon. The maneuver comes amid ongoing US-China trade negotiations.

Led by Senator Grassley, the initiative shadows previous legislative experiences to build a framework that challenges the president’s broad tariff powers. Rep. Bacon’s involvement proposes a similar House version, highlighting the multi-faceted approach.

This measure has the potential to impact both domestic industries reliant on Chinese imports and global market dynamics. Tariffs applied up to 125% have already generated significant market volatility and raised concerns within financial sectors.

Financial markets exhibit distinct patterns of volatility with the mention of tariffs, affecting asset classes like cryptocurrencies and equities. Legislative shifts may further agitate market players and shape institutional trading strategies.

Cryptocurrencies are reacting to the geopolitical maneuvers with increased trading volumes and market swings. Entities like BitMEX’s Arthur Hayes emphasize the role of Bitcoin as a “non-sovereign store of value” amid trade tensions. “Trade wars reinforce why you want non-sovereign store of value. Expect BTC volatility — this is global macro in motion.”

Future outcomes might see shifts in regulatory landscapes, particularly if trade policies evolve. Data from past trade escalations suggests a potential alignment in crypto and macroeconomic indicators, indicating that global macro risks could prominence.