Donald Trump’s upcoming “Liberation Day” tariff declaration is being designed by some experts as a global trade reset and may be negative implications for crypto.
While most attention focuses on political outcomes and business disruption, extensive results for digital assets, and global structures that support them, are worth looking closely.
Heidi Krebo-Reddikar, Senior Fellow of Council on Foreign Relations, recently described on Bloomberg TV US President Donald Trump Plans as “tearing” of existing free trade agreements with the US closest colleagues. It contains the so -called “dirty 15”, a group of major trading partners that make 80% of the American trade simultaneously.
Trump’s proposed system, unilateral tariffs and non-tariff obstacles, represents a complete change away from the cooperative global order that has defined international trade in the last several decades.
Why is this for Crypto?
Crypto naturally crosses the border. Its infrastructure, user, capital flow and regulatory structures depend on global alignment and relatively open markets. Any change towards economic fragmentation risk disrupts that progress.
Crebo-UDIKER notes that countries like Canada are already preparing to rebuild trade and investment relations, preparing to diversify away from the US. In this new era, markets can be more closed, regulation more inconsistent, and capital control may be more common.
She may agree (I don’t know), but all these are hostile conditions to adopt crypto. She also warns a comprehensive retreat from the multilateral structure that underlines both global finance and regulatory cooperation.
If the US turns inward, while allies look elsewhere, especially towards China, which is giving itself a position as the protector of the global system – this can weaken the West’s impact on the digital asset standards.
Crypto’s advocates have recently happy Trump’s embrace of Stabecrim and Digital Finance, but should be cautious. A fragmented world, draws in a different direction on trade and technology with each country, is not a world where crypto can grow.
Forget about Michael Siler Bitcoin vision crosses $ 200 trillion market cap And we can only hope that it can catch on $ 1 trillion valuation.
If the global coordination ends, there may also be possibilities for the next wave of crypto’s adoption. If yes, it was a fun run. If not, I would be happy to be wrong.
