Regulatory pressure on cryptocurrency investors in the U.S. may be easing, but new challenges are emerging. The global trade war initiated by Trump has shaken the risk markets significantly. As a result, cryptocurrency investors are again facing declines due to DeepSeek sales and rising customs tariffs. What is the current situation?
Global Trade War
Trump claims to favor cryptocurrencies and has already taken steps to reduce domestic pressure. However, the imposition of tariffs has upset macroeconomic balances, putting risk markets in jeopardy. Just moments ago, France’s Finance Minister announced readiness to respond in kind to Trump’s actions. High-ranking officials from the European Union have expressed similar determination to implement additional tariffs if necessary.
Trump’s policies could push relatively weaker economies, like Mexico, into recession, as the new U.S. President sees crushing others as a reasonable option for U.S. economic recovery. He is discussing additional tariffs not just on countries with trade deficits, but on nearly all nations. This week, Trump indicated that new tariff announcements are forthcoming.
In the coming hours or days, we may see additional countries being added to the tariff list. During a meeting with Trump on Friday, Japan’s Prime Minister offered massive investment promises but could not escape the threat of tariffs. The potential actions against regions like the EU and the UK raise concerns about escalating tensions. China has already retaliated and did not follow through with the anticipated meeting with Trump last week.
