Trump's tariff announcement sparks global market uncertainty, with crypto leaders predicting long-term opportunities - IcoHolder.

Donald Trump’s recent tariff announcement, coinciding with “Liberation Day,” has sparked significant concerns and confusion across global markets. Crypto experts have weighed in, offering varying opinions on the potential impact, with some fearing an economic fallout while others see both short-term disruption and long-term opportunities.

The tariffs, aimed at major U.S. trade partners, impose levies on imports as a means of pressuring negotiations. This move mirrors Trump’s previous trade strategies, where economic tension is leveraged to secure more favorable terms for the U.S. economy. The proposed baseline 10% tariff would position the U.S. among the highest-tariff developed nations, putting it alongside Argentina and Brazil, which have rates of 11.4% and 12.1%, respectively.

Before this announcement, the U.S. tariff rate averaged just 3.4% in 2024, well below the global weighted average of 8.6%. For comparison, China’s tariff rate stood at 7.3%, while the European Union’s average was 5.1%. The higher U.S. tariff rate introduces a significant shift in global trade dynamics.

Crypto industry leaders are less concerned about the tariffs themselves than the uncertainty they create. Mateusz Kara, CEO and co-founder of Ari10, argued that the key issue lies not in the tariffs, but in the market’s uncertainty over what will actually be imposed. “The markets are waiting for an element of certainty,” he said. “Once the tariffs are set, they will be priced into the market, resulting in either declines or increases.” Kara believes that, like in past negotiations, Trump will likely start with high tariffs and later lower them in exchange for more favorable terms.

Gus van Rijckevorsel, CEO of Ultra, echoed Kara’s sentiments, suggesting that Trump’s strategy is deliberate and designed to create instability. “Liberation Day is Trump’s attempt to utilise classic business techniques on global trade markets,” he stated. The tariffs are meant to shake up U.S. trade partners and generate maximum stress before negotiations resume. While this approach may cause volatility in the short term, van Rijckevorsel predicts that Trump will ease the pressure and move toward securing new trade deals.

Despite the immediate uncertainties, van Rijckevorsel sees potential benefits for the crypto market. He explained that stresses in the global financial system provide valuable insights for institutional investors into how markets perform under pressure. Positive indicators suggest that the market may be moving in the right direction, and the volatility could drive further institutional adoption of cryptocurrencies.

In the face of this market turbulence, Trump’s tariffs are seen by some as a strategic gambit aimed at securing better trade terms, with potential long-term advantages for both the U.S. economy and the crypto industry. However, the coming months are expected to be marked by continued volatility as the global markets adjust to the shifting landscape.