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In a Nov. 26 Truth Social post, U.S. President-elect Donald Trump reaffirmed plans to maintain international tariffs. He pledged these measures would persist “until Drugs, particularly Fentanyl, and Illegal Aliens stop this Invasion of our Country.”
Trump warned Mexican President Claudia Sheinbaum of a 25% tariff if action isn’t taken to curb drug and criminal inflows. Additionally, he proposed a 10% tariff on Chinese imports, criticizing Beijing for leniency on fentanyl dealers. These measures would build on Biden-era tariffs, raising global trade tensions.
Analysts predict Trump’s tariffs could increase goods prices, disrupt businesses, and spur global inflation. Such measures also create economic uncertainty, with the U.S. dollar gaining 0.4% after Trump’s announcement, while currencies like the Chinese yuan and Mexican peso weakened.
Higher tariffs reduce imports, boosting inflation and driving economic uncertainty. This tension often benefits Bitcoin, seen as a “safe-haven” asset. As traditional markets face volatility, investors turn to Bitcoin to hedge against inflation and geopolitical risks.
During the 2018-2020 U.S.-China trade war, rising costs of Chinese imports drove Bitcoin demand, pushing its price higher. This showcases how trade tensions can amplify interest in cryptocurrencies.
Trump’s tariffs may disrupt global markets but could bolster Bitcoin’s appeal as a hedge against inflation and instability, reinforcing its role in uncertain times.
editor
A web 3 girl living in a web 2 world.
