Analysis of Trump’s Tariff Policy and its Impact on the Crypto Market: A Deep Dive into the Trade War

US President Donald Trump’s confirmation of additional tariffs on Canada and Mexico has sent shockwaves through the global financial markets. The announcement, made on the evening of March 3 (Beijing time), has led to a sharp decline in Bitcoin prices and a significant drop in the US stock market.

The imposition of reciprocal tariffs, set to take effect on April 2, has shattered hopes of reaching an agreement with Canada and Mexico to avoid comprehensive tariffs. The impact of Trump’s decision has been felt not only in the traditional financial markets but also in the crypto market.

Bitcoin, which had been enjoying gains from the “crypto strategic reserve,” saw an 8% drop in less than 48 hours following Trump’s announcement. The US stock market also took a hit, with the Nasdaq index falling by 2.6%. Companies like Tesla, which had been supporting Trump, saw their stock prices plummet as well.

The tariff policy implemented by Trump has raised concerns about its impact on the global risk market with “American attributes.” The trade war initiated by Trump has not only affected the flow of goods but also technology-collateralized capital and currency competition. The consequences of these tariffs extend beyond just trade barriers and have a profound impact on the global financial system.

As the crypto market reacts to the news of additional tariffs, investors are closely watching how other countries will respond. The market performance of crypto assets is now intertwined with US financial policies and regulatory guarantees, further deepening the connection between the two.

In response to the escalating trade tensions, the Trump administration has announced the establishment of a national reserve of crypto assets. This move is seen as a way to maintain the trust of global capital amidst the uncertainty caused by the tariffs. Crypto assets may become a strategic tool for the US government in navigating the changing global financial landscape.

As Trump’s trade policies continue to disrupt the traditional financial system, the role of crypto assets in providing a hedge against economic uncertainties becomes more significant. The establishment of a national reserve of crypto assets signals a shift towards a new era of financial innovation and geopolitical strategy.

The impact of Trump’s tariffs on the global financial markets is far-reaching, and the implications for the future of trade and finance remain uncertain. As the world watches how countries respond to these tariffs, the role of crypto assets in shaping the new financial order becomes increasingly important.