Following yesterday’s statements from the Federal Reserve, cryptocurrencies have unexpectedly started to rise. Surprisingly, the rise was not significantly related to the Federal Reserve as Jerome Powell’s comments were likely to support a decline. Instead, the surge in cryptocurrency values was triggered by the announcement from Trump’s side about the lifting of chip restrictions, which helped recover losses in tech stocks.
U.S. Tariff Agreement
This week, Trump mentioned a major announcement. Last week, U.S. officials had stated that we could expect an important tariff agreement this week. Out of 18 major economies, all except China have been negotiated, indicating that this agreement could encompass all significant countries. Today’s leaks suggest that the agreement will be made with the United Kingdom.
The disappointing aspect is that the 10% tariff will remain unchanged. The agreement, focusing on automobiles and steel, aims to eliminate an additional 25% cost, but the general 10% customs tariff will remain.
This reality is unfavorable for cryptocurrency, as it implies tariffs might become permanent. If such a process concludes with countries like the UK, with whom the U.S. is eager to make deals, it may have severe, lasting consequences with countries like China that are unwilling to concede. Discussions around this topic are expected to be intense until July.
A U.S. and a UK official remarked that Trump’s trade announcement with the UK will be limited in scope, that future commitments will be heavy, and that existing 10% universal tariffs will remain.” -CNN
