The Trump administration has imposed tariffs on imports from approximately 90 countries as part of its “reciprocal tariffs” policy. The straightforward approach follows a simple principle: if foreign nations place tariffs on American goods, the United States will respond in kind.
These newly implemented tariffs vary significantly in scale, ranging from 10% to 50% depending on the country of origin. China appears to have been particularly affected by this policy, experiencing substantial economic impact from what the administration describes as reciprocal trade measures.
The policy represents a significant shift in America’s approach to international trade relations, with administration officials defending it as necessary to ensure fair treatment for U.S. exporters in global markets
President Trump kicked off a new round of trade tensions with China earlier this year. On February 3, he added a 10% tariff on all Chinese imports. This built upon tariffs from his first term and those kept in place by the Biden administration. The situation quickly worsened. By March 5, Trump raised these tariffs to 20%. About a month later, on April 2, he added another 34%, bringing the total to 54%.
China didn’t take this lying down. On April 4, they hit back with their own 34% tariff on American goods. The US then threatened China with another 50% increase if they didn’t back down.
Instead of finding common ground, both sides doubled down. China eventually pushed their tariffs on US products to 84%. In response, the US dramatically escalated by imposing a staggering 104% tariff on Chinese imports.
This trade war has now reached unprecedented levels, with both economic superpowers seemingly unwilling to de-escalate the situation.
This escalation mirrors similar actions during Trump’s previous administration in 2017, when Bitcoin prices fell as much as 30% from all-time highs after tariff policies began.
Alt Daily on YouTube reports that Treasury Secretary Scott Bessant believes China has made a strategic error by escalating the situation. Bessant stated that China is playing with a pair of twos, and no other president has taken on this issue like Trump has.
Just a week ago, the United States announced a 34% tariff on Chinese imports, which immediately sent Bitcoin prices down an additional 15%.
The Dollar Strategy Behind the Tariffs
What many observers miss, according to Alt Daily, is the impact these tariffs are having on the US dollar’s strength. The dollar has been declining significantly against other major global currencies.
Some analysts think this could be part of Trump’s plan – deliberately weakening the dollar to boost American exports. A weaker dollar makes American goods more affordable for foreign buyers.
Alt Daily explains that America has historically been in a difficult position as the issuer of the world’s reserve currency. People buy and store dollars, selling goods to America rather than buying American products.
Read Also: U.S. House Introduces Landmark Stablecoin Bill, Paving the Way for Crypto Regulation
Could The Tariffs Boost Crypto in The Long Run?
TheChartArtist on X sees potential long-term benefits for cryptocurrency markets despite short-term volatility.
Tariffs raise prices and fuel inflation, creating an environment where cryptocurrencies often perform well. A weakening dollar historically boosts crypto valuations.
Government market manipulation through tariffs undermines trust in centralized systems. This growing distrust drives interest toward decentralized finance solutions.
How Trump-Style Tariffs Could Boost Crypto Long-Term
— RudoViljoen (@TheChartArtist) April 5, 2025
– Tariffs raise prices, fueling inflation. 🔥
– Currency wars ahead? A weaker dollar boosts crypto. 🌐
– Distrust in the system grows. Tariffs signal government market manipulation, undermining centralized systems.… pic.twitter.com/XNmLlkdE3J
Geopolitical tensions highlight the value of safe-haven assets. Bitcoin increasingly serves as a form of digital gold during uncertain times.
Efforts to modernize the economy in response to trade pressures could accelerate digital adoption, supporting cryptocurrency infrastructure.
While acknowledging short-term disruptions, TheChartArtist believes tariffs speed up trends that favor cryptocurrency’s rise. Trump’s tariff policies might deliver unexpected benefits for decentralized finance in the long run.
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