U.S. Tariffs Finally Receiving Clarity

As this article is being published, US President Trump is announcing new tariffs from the White House Rose Garden. The announcement was widely speculated to be timed shortly after stock markets close, possibly due to fears of a negative reaction while trading was still going on earlier today.

Tariffs, from a very basic standpoint, are placed on goods imported from other countries, making foreign products more expensive and encouraging citizens within the country to buy domestic (instead of international) goods.

In the case of the US and Trump's tariffs, some take him at his word while others believe he is being disingenuous with his true intentions. But the front-facing reasoning for them being implemented appear to be for the purpose of:

• Protecting American industries from cheaper foreign competition
• Pressureng other countries to remove their trade barriers or unfair practices
• Generating revenue for the U.S. government
• Making global trade fairer for the U.S.

Unless you have been living under a rock, you've likely seen that this topic has been polarizing ever since it began being seriously discussed shortly before Trump was elected last November. And with his speech today, we are predictably seeing a high level of discussions about it across social media:

Like any government policy change, there have been several economic pros and cons being brought up in relation to these particular tariffs:

PROS:

• Protects American businesses and jobs in certain industries
• Encourages production and purchasing within the U.S
• Additional income could potentially fund infrastructure projects, reduce budget deficits, or support domestic economic initiatives

CONS:

• Increases prices for consumers, since imported goods become more expensive
• Foreign countries may retaliate with their own tariffs, potentially causing a trade war
• Tariffs can lead to economic slowdown due to decreased global trade, higher inflation, and lower consumer spending
• There could be potential retaliation from other countries, leading to a full-on trade war

As of what Trump's announcement has specifically entailed thus far, he is initiating "reciprocal tariffs," meaning the U.S. will tax imports similarly to how other countries tax American exports. The main goal of this boils down to "fairness" and future negotiation leverage, from Trump's perspective—if one country charges high tariffs, the U.S. will charge equally high tariffs back.

Trump has also confirmed a 25% tariff on all foreign-made cars, effective at midnight tonight. Imported auto parts will also face tariffs. He is comparing current trade issues to past events, claiming America has been treated unfairly in trade relationships. Trump has also said America has been “looted and plundered” by unfair trade practices, and promises these new tariffs will help American industries grow stronger and enter a "golden age."

So how does this all impact cryptocurrency, you ask? Well, tariffs can trigger uncertainty in traditional financial markets, such as stocks and bonds. And many crypto bulls argue that this could very well result in investors sometimes moving their money into cryptocurrencies as an alternative asset.

However, so far, the main reaction from investors is to move their money into more traditional safe havens that don't get impacted by economic conditions (and often benefit with surging values as a result of widespread disaster and war fears) like gold and silver:

Gold, in particular, has been busy cracking all-time highs, surging +20% in value over the past three months, and sitting at ~$3,190 per ounce as of now. The premise of crypto being the alternative 'digital gold' has so far proven to be vastly overstated. Instead, Bitcoin has mostly mirrored the S&P 500 throughout 2025 so far, with very temporary cases of decoupling. And as for altcoins, most have fared far worse than BTC.

While gold doesn't really rely on import costs, many companies do. Thus far, we know that many businesses and consumers have been unhappy about these tariffs. Companies like Volkswagen have already responded by warning customers about price increases due to the new tariffs. And for good reason:

But of course, cryptocurrency is much more sentiment-driven than global stock markets. So the crowd's reaction to today's announcements will have a lot to do with how April, 2025 ends up shaking out. And how is social media reacting thus far?

A few days prior to today's speech, a narrative from @Ashcryptoreal had already been gaining a lot of steam. Essentially, this is being compared to the 2018 crypto bear market, where there were similar tariffs implemented during Trump's first term as president. And after approximately 11 months of pain and frustration, there was a long-term bullish impact throughout 2019 and up until COVID-19 in March, 2020. You can check out his full post here to read the complete thesis:

@code1356702's post believes that Trump will get exactly what he wants, and the result will be quick capitulation from the rest of the world:

But not everyone in crypto believes this is an immediate win, or simply a 'short-term pain, long-term gain' scenario that will play out. As Trump's plan gets fully laid out and executed, here are some of the top posts we're seeing from a crypto perspective:

@BoyceCrypto102's post explains that the reciprocal tariffs are not creating a favorable trading environment:

And @adamscochran's post argues that the U.S. infrastructure would not allow for these tariffs to play out the way Trump may expect, due to the lack of factories and workers:

So how crypto markets get impacted will likely depend on the world's reaction now that the U.S. has made their rumored tariffs official. If other countries call Trump's bluff and start a trade war, there will undoubtedly be some long-term pain seen across both stock and crypto markets. But if they cave and begin to lower their own tariffs toward the U.S. as a gesture to make imports/exports more affordable across the world, this could have amazing bullish consequences.

Thus far, cryptocurrency markets have dropped as Trump's speech has gone on. But the real fireworks will begin when U.S. stock markets open tomorrow, and major institutions and hedge funds begin to react to how the world's economic outlook has changed as a result of these moves.

As for the full list of tariffs by country, they are documented here, chronologically ordered by highest down. Asian countries are by far the most impacted. Countries not listed are receiving a base tariff of 10%, just like the 21 lowest countries below:

• Cambodia - 49%
• Laos - 48%
• Madagascar - 47%
• Vietnam - 46%
• Myanmar (Burma) - 44%
• Sri Lanka - 44%
• Bangladesh 37%
• Serbia - 37%
• Botswana - 37%
• Thailand - 36%
• China - 34%
• Taiwan - 32%
• Indonesia - 32%
• Switzerland - 31%
• South Africa - 30%
• Pakistan - 29%
• Tunisia - 28%
• Kazakhstan - 27%
• India - 26%
• South Korea - 25%
• Japan - 24%
• Malaysia - 24%
• Côte d'Ivoire - 21%
• European Union - 20%
• Jordan - 20%
• Nicaragua - 18%
• Philippines - 17%
• Israel - 17%
• Norway - 15%
• Turkey - 10%
• Peru - 10%
• Costa Rica - 10%
• Dominican Republic - 10%
• United Arab Emirates - 10%
• New Zealand - 10%
• Argentina - 10%
• Ecuador - 10%
• Guatemala - 10%
• Honduras - 10%
• Egypt - 10%
• Saudi Arabia - 10%
• El Salvador - 10%
• Morocco - 10%
• Trinidad and Tobago - 10%
• Brazil - 10%
• Singapore - 10%
• Chile - 10%
• Australia - 10%
• Colombia - 10%
• United Kingdom - 10%

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Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.