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Tariffs Vs. Bitcoin: How Crypto is Reacting to Trump’s Trade War Economy

Trump’s pricing inversions continue to create upheavals in the financial markets, and there is no signs of stopping. Many are tired of the planned slowdown in economic activity throughout the third quarter of 2025.

Unlike traditional markets, crypto has shown a different trajectory. More specifically, Bitcoin has decreased news concerning prices. According to the CEO of Kronos Research, cryptocurrency should help to mitigate trade uncertainty for individuals and businesses.

Prices tariffs

President Trump’s trade policy in 2025 was characterized by a recurring model of pricing threats decorated with reversal and extensions.

On Monday, President Trump announced reciprocal rates targeting 14 countries, with rates between 25% and 40%. He also extended a break on broader rates until August. Other negotiations are expected, with a deadline in mid-July for potential commercial transactions.

“Global trade negotiations feel fragmented, the United States by asking for more by constantly changing its position,” Huang told Beincrypto.

In some cases, President Trump’s repression has proven to be effective. Last week, Canada immediately canceled its tax on digital services (DST) – a 3% levy from digital income generated inside its borders – the day after the United States suspended all trade negotiations with the country.

This decision was met positively by traditional financial markets, with the industrial average of Dow Jones and the Nasdaq Composite Seeing Gains and the S&P 500 reaching a new record. The Canadian dollar has also remained relatively stable compared to the US dollar.

While some see these last announcements as a lever effect in current negotiations rather than a direct climbing, significant volatility persists. A large part has created immense uncertainty for companies around the world.

Growing costs on consumers and businesses

Among several aspects of Trump’s commercial policy, the minimum rate rate of 10% on most American imports is directly linked to higher consumption costs and a reduction in commercial profits. This tax, three to four times higher than the rates before 2025, created a much more restrictive environment than companies were used to it.

“The current basic price is a major economic trail. It increases the costs for businesses, squeezes profits and increases consumers’ prices,” said Huang.

This significant increase represents a seismic change for consumers and business owners. Many companies have rushed to store products, parts and other imports after the initial pricing announcement of the Trump administration on Canada, China and Mexico in February.

However, these precautionary measures can only go so far.

According to the Tax Policy Center, the last prices should soar in early August, with rates climbing 48% on women’s clothing, 40% on books and 22% on pastries.

The Yale budget laboratory, in turn, calculated that the average rate rate that consumers have faced 18%, the highest since 1934.

Tariffs Vs. Bitcoin: How Crypto is Reacting to Trump’s Trade War Economy
Impact of rates on consumer goods. Source: Center for tax policy.

Consequently, consumer prices will inevitably increase and the beneficiary margins will shrink, with the most affected lower and average income households.

“The increase in import costs reaches each stage of the supply chain, forcing companies to absorb costs or increase prices,” said Huang.

However, in the middle of chaos, Bitcoin was able to resist normal volatility associated with this degree of uncertainty.

Does Bitcoin really hate new prices?

When Trump began his price frenzy in February, the cryptocurrency markets responded negatively to the changes in incoherent policy. Bitcoin even dropped below $ 80,000 this month for the first time since November 2024.

However, as the inversions of trade and political adjustments continue, Bitcoin recently seemed to be decoupled from the latest commercial announcements, certain analysts noting its resilience despite the volatility of the current market.

“Bitcoin hates new prices because it is more considered as a macro hedge than speculation,” said Huang with Beincrypto, adding: “Prices feeding inflation and market disturbance, investors are based on the rarity and decentralization of Bitcoin, reducing its sensitivity to short -term trade changes.”

After the announcement of adjusted rate rates on Monday, the main American stock market indexes decreased. On the other hand, the Bitcoin value did not experience the same news.

Instead, he jumped, reaching a new historic peak over $ 118,000 today.

The price of Bitcoin exceeds $ 118,000. Source: Beincrypto.
The price of Bitcoin exceeds $ 118,000. Source: Beincrypto.

Meanwhile, technology behind the crypto itself can help individuals sail in an economic panorama induced by prices.

Blockchain for the resilience of the supply chain

Beyond Bitcoin price movements, Blockchain technology offers practical solutions for individuals and businesses with market instability.

It can bypass the bulky and opaque features of traditional supply chains, which are exploited by unpredictable trade policies.

“The blockchain POWERS Supply Chain Resilience by delivering transparent and immutable registers on the chain of each transaction and expedition,” said Huang, adding: “This visibility in real time helps the teams to spot the bottlenecks, to check the provenance and to fraud to the oblique bar providing a solution of bullets in a world disturbed by trade.”

Meanwhile, companies can instantly check the origins of products and follow goods, guarantee compliance and avoid expensive delays or penalties. This improved transparency allows faster adaptation to new regulations.

In the middle of such a turbulent backdrop, people will continue to look for ways to stay above the water.

Such a context inevitably makes technological solutions that support cryptocurrency an option of rhythm for those who see their economic perspectives worsen continuous turbulence.

The prices of the post vs. Bitcoin: How the crypto reacts to the Trump’s trade economy appeared first on Beincrypto.

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