Trump Launches New Tariffs: Will Crypto And Stocks React?
President Donald Trump has announced new tariffs on dozens of trade partners, ranging from 10% to 12.5%. Some of the taxed regions include the UK, China, the European Union, Canada, Japan and India, among others. According to President Trump, “Today’s action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere.” Let’s discuss if Trump’s new tariffs will impact the stock and crypto markets.
Will President Trump’s New Tariffs Dip The Stock And Crypto Markets?
Tariffs have been one of President Trump’s signature moves in his second term as President. His tariff spree in early 2025 caused substantial volatility in global trade. It is possible that Trump’s latest tariff move will have a similar effect.
The global economy is still struggling to gain steam. The ongoing US-Iran conflict has already led to a rise in oil prices. Goldman Sachs analysts anticipate Brent crude oil prices to hit $120 per barrel by the fourth quarter of this year. Rising oil prices may prompt the Federal Reserve to raise interest rates. Higher rates may cause an exodus of investors from the crypto and stock markets. Trump has repeatedly asked for lower interest rates, but high inflation has kept his demands at bay.
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