Trump’s trade barriers and crypto bets: Rewriting the rules of global markets

Trump’s trade barriers and crypto bets: Rewriting the rules of global markets

I’ve been closely following the latest developments surrounding US President Donald Trump’s trade tariffs and cryptocurrency policies, especially as they unfold in 2025. The query at hand calls for a comprehensive analysis of how these policies are shaping global markets, and I’m eager to dive into the data, reflect on the implications, and offer my perspective.

With Trump’s recent announcement of heightened blanket tariffs and his administration’s surprising embrace of cryptocurrencies, the world is witnessing a fascinating interplay of protectionism and financial innovation.

Trump’s tariff escalation: A seismic shift in global trade

Let’s start with the tariffs, which have once again thrust trade tensions into the spotlight. On Thursday, in an interview with NBC News, President Trump revealed plans to ramp up blanket tariffs on most US trading partners from the current 10 per cent to a proposed 15 per cent or even 20 per cent. This escalation builds on an already aggressive trade stance, which saw the average applied US tariff rate climb to an estimated 27 per cent between January and April 2025, a level unseen in over a century.

But Trump didn’t stop there; he also singled out Canada, threatening a 35 per cent tariff on its imports starting in August, with a warning that retaliation would trigger even higher rates. This isn’t just rhetoric; it’s a calculated move to protect American industries and address trade imbalances, though the consequences are rippling far beyond US borders.

The immediate market reaction was telling. Global risk sentiment took a hit on Friday morning, with Asian equity indices trading flat and US equity futures signalling a lower open. This follows a volatile period earlier in the year when Trump’s “reciprocal tariffs,” dubbed “Liberation Day” on April 2, 2025, sent shockwaves through financial markets. Japan’s Nikkei 225, for instance, plummeted 7.8 per cent in a single day, and analysts now project a 0.8 per cent reduction in Japan’s GDP due to these measures.

Export-dependent economies like South Africa are scrambling to diversify their markets, while major trading partners, China, Canada, and the European Union, have retaliated with their own tariffs. China’s duties on US goods have soared to 125 per cent, and Canada has slapped a 25 per cent tariff on non-USMCA-compliant vehicles. This tit-for-tat escalation is fracturing global trade networks, and it’s hard not to see the parallels with the trade wars of Trump’s first term.

Economically, the tariffs are a double-edged sword. On the downside, they’ve driven up costs across the board. In the US, consumer prices rose by 2.4 per cent in 2025, with apparel prices surging 17.0 per cent and food costs increasing by 2.6 per cent. Businesses, caught in the crossfire, are passing these higher import costs onto consumers or absorbing them at the expense of profit margins.

Supply chains, already strained by years of disruption, are being forced to adapt yet again. Some companies are relocating production, others are seeking alternative suppliers, and many are simply scaling back.

The International Monetary Fund has downgraded its 2025 global growth forecast, citing these tariffs as a key factor, and there’s a growing chorus warning of a potential recession. For the US itself, estimates suggest a long-term GDP hit of up to eight per cent, a steep price to pay for protectionism.

There’s an upside, or at least an intended one. Trump’s tariffs aim to shield domestic industries, particularly manufacturing, from foreign competition. By making imported goods more expensive, the policy could stimulate domestic production and job growth.

Steel and aluminum tariffs, now at 50 per cent, and a 25 per cent duty on imported cars are designed to breathe new life into American factories. Whether this will work in practice is debatable—supply chain complexities and higher costs could offset any gains but the intent is clear. I can’t help but wonder if this is a last stand against an unstoppable tide or a genuine pivot toward self-reliance.

The cryptocurrency boom: Trump’s unexpected ally

Now, let’s pivot to a very different story: Trump’s embrace of cryptocurrencies, which has sent shockwaves of another type through global markets. On Thursday, Bitcoin hit an all-time high of US$116,046.44, breaking its earlier record of US$113,734.64, and it’s up 24 per cent for the year. This rally isn’t just a fluke. It’s fuelled by a combination of institutional demand and a policy shift that’s caught many by surprise.

Back in March 2025, Trump signed an executive order establishing a strategic reserve of cryptocurrencies, a bold signal that the US government is no longer just tolerating digital assets but actively endorsing them. Add to that the appointment of crypto-friendly figures like SEC Commissioner Paul Atkins and White House AI czar David Sacks, and you’ve got a regulatory environment that’s rolling out the red carpet for blockchain innovation.

The drivers behind this surge are multifaceted. A weakening US dollar, with the Dollar Index hovering at 97.576, has investors seeking alternatives. Global liquidity is abundant, and institutional capital is pouring in, think hedge funds, pension funds, and even banks jumping on the crypto bandwagon.

Galaxy’s analysis of market dynamics since June 2025 points to geopolitical conflicts and economic uncertainty as catalysts, with Bitcoin emerging as a standout performer. When Trump’s tariff announcement briefly sent Bitcoin below US$76,000 amid a broader risk-off move, it quickly rebounded, underscoring its resilience. Binance CEO Richard Teng and VanEck’s Mathew Sigel are bullish, suggesting Bitcoin could become a reserve asset if the dollar’s dominance wanes further.

For global markets, this is a game-changer. Cryptocurrencies are no longer a fringe experiment. They’re increasingly seen as a hedge against traditional market risks. Gold, up 0.3 per cent to US$3,324.63 per ounce, is still a safe haven, but Bitcoin’s meteoric rise suggests it’s stealing some of that thunder.

The potential is enormous: greater adoption could drive financial inclusion, spur innovation, and even reshape cross-border trade. Imagine a world where businesses use crypto to bypass tariff-laden banking systems, cutting costs and speeding up transactions.

However, there are risks as well; volatility remains a hallmark of the market, and regulatory gaps leave room for fraud and manipulation. Plus, the energy demands of crypto mining are a growing environmental headache, something I’ve seen spark heated, albeit with less focus than it deserves.

The interplay: Tariffs meet crypto in a global tug-of-war

Here’s where it gets really interesting: how do tariffs and cryptocurrencies interact? At first glance, they seem like opposites—one rooted in old-school protectionism, the other a symbol of borderless innovation. But dig deeper, and there’s a fascinating dynamic at play. The economic uncertainty sparked by tariffs could be turbocharging crypto’s appeal.

When trade tensions flare and markets wobble, as seen in Friday’s retreat in global risk sentiment, investors often look for hedges. Bitcoin’s decentralised nature, unbound by any single economy, makes it an attractive refuge. I’ve seen this before, during the 2018-2019 US-China trade war, when Bitcoin surged as traditional assets faltered. In 2025, with tariffs hitting harder, that pattern could intensify.

Conversely, crypto might soften the tariffs’ blow. If businesses adopt blockchain for cross-border payments, they could sidestep some of the costs and delays tied to traditional finance. A US importer facing a 20 per cent tariff on goods might use crypto to settle with a supplier faster and cheaper, easing the sting.

But let’s not overstate this, crypto’s still young, and its scale is limited. Most trade still flows through banks, and regulatory hurdles loom large. Additionally, the tariffs could indirectly harm crypto; higher costs for imported mining equipment from China, for instance, might squeeze miners and developers.

If I had to bet, I’d say crypto’s rise will outlast the tariff storm, though not without a wild ride.

For now, buckle up!

 

Source: https://e27.co/trumps-trade-barriers-and-crypto-bets-rewriting-the-rules-of-global-markets-20250711/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Anndy Lian Spoke to BitcoinLive on NFT, Defi, Wall Street Bets, XRP and more

Anndy Lian Spoke to BitcoinLive on NFT, Defi, Wall Street Bets, XRP and more

Anndy Lian, an intergovernmental blockchain advisor and entrepreneur based in Singapore spoke to BitcoinLive on 31 January 2021 on his views on NFT, Defi, Wall Street Bets, XRP and more.

Anndy started the session by sharing what he is doing right now. He has mentioned that he is taking a break and spending time to change some of his business from traditional to crypto like. He is looking at introducing NFT art to www.smexy.com, convert www.worldairfare.com from a referral business model to a crypto rebate scheme.

NFT is a hot topic and the host from BitcoinLive asked Anndy how he felt NFT is going for 2021. Anndy’s reply is bullish on the NFT market, he felt that there should be some price adjustments and protection for the consumer. The increase in price for Ethereum should not be the driving factor for NFT art for example to pump up the price. The price has to be pegged to the value of the artwork.

When asked on the latest development on the regulation space. Anndy highlighted on the newly released Defi research paper by South Korea’s government (Ministry of Science and NCT).

“This is the world’s first government-led Defi research paper. And I believe more governments will release their own in time to come. This shows governments’ interest and they are more ready to move into our space.” Anndy Lian told Blockcast.cc reporter.

On his views on XRP, Lian remained bullish on the outcome for XRP. He stated that right now XRP does not function like a securities and for the past, they have to sort this out properly with SEC. He also emphasized that XRP will still function well with or without Ripple as their businesses channels are all established.

Lastly, Anndy commented on the current movement, Wall Street Bets (WSB). He felt that the movement also served as a warning that financial markets are volatile and it is not for everyone.

“If a highly decentralised coin such as DOGE can be manipulated, any coins can be manipulated. So promoting WSB and changing your profile picture with the golden hair may have a negative backlash to this young crypto space.”

At the end of the session, Anndy cautioned all to be careful when investing and stay safe.

Video:

About Anndy Lian:

Anndy Lian is an early blockchain adopter and experienced serial blockchain entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030” and currently the Advisory Board Member of Hyundai DAC Technology. He plays a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region. Anndy is also part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce

Media Contacts:

Name: Melody Chan
Title: Editor
Website: https://www.blockcast.cc/about/​
Email: contact@blockcast.cc

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Ripple Bets On the New SEC While the XRP Purge Continues

Ripple Bets On the New SEC While the XRP Purge Continues

It looks like major US-based blockchain company Ripple is putting their hopes in the new US Securities and Exchange Commission (SEC) following a lawsuit filed against the company by the regulator. Meanwhile, more platforms are suspending trading in XRP.(Updated at 16:08 UTC: updates in bold.)

Ripple is now looking towards the incoming new SEC leadership, which may (or may not) be more friendly towards it and XRP. “[W]e also look forward to working with all of the Commissioners and the SEC’s new leadership, once appointed,” they said in their December 29 announcement.

They added that “in all, the SEC Chair, six of his Directors from each SEC Division, the SEC’s Chief Economist and the SEC’s General Counsel have now departed (many left just last week),” and added that their “steadfast commitment to constructive regulatory engagement has not changed.” (Learn more: Cryptoverse Might Face ‘More Aggressive’ SEC Under Biden)

As reported, Ripple is questioning the motivation for bringing this action against them just days before the change in administration because “the SEC has permitted XRP to function as a currency for over eight years.”

Meanwhile, among the latest announcements regarding the staff change on the SEC’s website is the one that Sean Memon will conclude his tenure as the agency’s Chief of Staff in January 2021. Memon served as principal advisor to Chairman Jay Clayton on legal, policy and management matters, it said. It was announced in November that Clayton himself would leave by the end of this year, and just yesterday it was confirmed that Donald Trump designated Elad L. Roisman as Acting Chairman of the agency, who is generally said to be crypto-friendly.

Calling the lawsuit an attack on the entire crypto industry in the US that brought more uncertainty to the market and harm to the community the SEC is supposed to be protecting, Ripple said the lawsuit “affected countless innocent XRP retail holders with no connection to Ripple.”

Following the news, XRP erased almost all its gains over the past 12 months.

The company added that Ripple will continue operating in the US and globally, that the majority of their customers aren’t in the US, and that overall XRP volume is largely traded outside of that country.

An initial pretrial conference in the lawsuit has been set for February 22, according to a court order.

Meanwhile, exchanges continue their ‘evictions’ of XRP, so to say. Following several minor exchanges, as well as major ones like Coinbase and BitstampBittrex said it would be removing four available XRP markets (around USD 20m in combined trading volume in the past 24 hours, per Coinpaprika.com data) on January 15.

“Until further notice, customers will continue to have access to their XRP wallet on Bittrex after the markets are removed,” they added.

Also, Swipe Wallet will delist XRP for the USA users on January 5. Crypto buying app Ziglu will suspend XRP trading on January 12 and digital payment services provider Wirex decided against including XRP in a US version of the app slated for launch in January, The Block reported.

Meanwhile, in their latest report, Arcane Research predicted that XRP will drop out of the top 10 coins by market capitalization in 2021. “XRP has experienced terrible volatility lately with the SEC charges against Ripple, leaving late investors with big losses. XRP is about the erase all gains of 2020,” it said.

XRP has already dropped from the third position as the largest cryptoasset by market capitalization to the fourth following the crackdown.

At pixel time (10:23 UTC), XRP trades at USD 0.21 and is down by 4.6% in a day and 38% in a week. The price crashed by 66% in a month, erasing its gains over the past 12 months to less than 9%.

XRP price chart:

Ripple Bets On the New SEC While the XRP Purge Continues 102
Source: coinpaprika.com

Original Source: https://cryptonews.com/news/ripple-bets-on-the-new-sec-while-the-xrp-purge-continues-8764.htm

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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