- Trump sets ultimatum, tariffs could rise by August.
- Market volatility expected, Bitcoin seen as safe haven.
- Asian and European equities already show initial decline.
US President Donald Trump announced that if new trade agreements are not finalized by July 9, tariffs will revert to April levels starting August 1, potentially affecting multiple industries globally.
Tariff Increases and Global Impact
Donald Trump confirmed that tariff levels could rise to 70% if negotiations fail. Secretary Scott Bessent noted that this decision will affect key sectors, hence impacting global supply chains.
“The rates will ‘boomerang back’ to the sometimes very high levels which President Donald Trump had announced on April 2—before he suspended the levies to allow for trade talks and set a July 9 deadline for agreement.”
Industrial sectors face possible disruptions due to the anticipated tariff changes. Asian and European markets have already seen declines, anticipating higher costs. Resistance from global trading partners remains high amidst uncertainty.
Financial Implications and Bitcoin’s Role
Financially, tariffs could raise costs across various goods, impacting industries, politics, and supply chains. The use of stablecoins like USDT may increase if fiat tensions rise, with Bitcoin acting as a hedge. Previous tariff hikes under Trump’s administration led to significant market upheavals, with Bitcoin as a perceived safe asset.
Historical trends suggest increased crypto use amidst fiat uncertainties, especially in cross-border trade. Economic analysts indicate that tariffs might bolster the ‘digital gold’ narrative of Bitcoin. With pending agreements, stakeholders across industries brace for potential changes in market dynamics and financial outlooks.
