US insistence on tariffs drags BTC into collapse
The crypto market experienced its biggest crash since the
#COVID crisis last night. As soon as US President
#DonaldTrump took office, he turned to customs duties, just like in his first term, which shook the balance of the global economy. The 25% customs duty on goods imported from Canada and Mexico and the 10% duty on China were not welcomed by the markets.
After Canada and Mexico announced that they would retaliate to the customs duties implemented by the Trump administration, the markets were gripped by even greater anxiety. Contrary to Trump, who claimed that customs duties would benefit the US economy, the general opinion in the market is that the trend is negative.
Contrary to Trumpās frequent statements along the lines of āI love customs duties,ā there is a different picture. Indeed, the customs duties in question mean an increase in imports from these countries. Therefore, the market has priced in possible inflationary pressure negatively. Speaking to Voice of America, analyst Brad Setser says that customs duties āwill have an immediate and negative impact on the U.S. economyā and that this is a strategy aimed at shrinking the U.S. economy.
Canadian President Justin Trudeauās response to the 25% tariff on US goods has fueled the idea that Trumpās trade wars are harming the US economy rather than benefiting it. Trudeau, who stated that the customs duties in question will be applied to $155 billion worth of US goods, said that the $30 billion tariff will come into effect on Tuesday and the other $125 billion in 21 days.
Likewise, the Mexican President announced that they will retaliate. Mexican President Claudia Sheinbaum, who said, āI am giving the order to implement the package of measures that includes customs duties to protect Mexicoās interests,ā stated that the government is in favor of dialogue but that they have to respond to Trumpās move.
#MarketPullback #BitcoinVsTariffs #Greencart $BTC $ETH $XRP