MICA Daily | Trump's first wave of tariffs ignites a trade war, sparking market concerns

encryption market softened over the weekend, with BTC falling below $100,000, and many other competing coins also experiencing declines. This market downturn is related to President Trump’s trade policy. He signed executive orders to impose a 10% tariff on Chinese imports and a 25% tariff on imports from Mexico and Canada (10% for Canadian energy imports).

In response, Mexico and Canada imposed tariffs on US goods, while China stated that it would file a lawsuit with the World Trade Organization (WTO). The US automotive industry is particularly affected, with Canada supplying 13% of automotive parts to the US and Mexico supplying 42%. In addition, agricultural trade will also be impacted, as Mexico and Canada respectively supply 23% and 20% of imported agricultural products to the US. Tariffs will disrupt the market and invite retaliation and counterattacks.

The market is concerned that tariff barriers will reignite trade wars between major countries, and tariffs may lead to an increase in the cost of raw materials and imported goods, causing the inflation that the United States has finally cooled down to flare up again. However, the most significant impact on the encryption currency market is still uncertainty. This is only the first wave of tariff policies, and there is still more uncertainty in trade. Funds in the encryption currency market have already started to withdraw and adopt a strategy of “playing it safe”.

Disclaimer: The article only represents the author’s personal opinions and does not represent the views and positions of Blockchain, all content and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and trades, and the author and Blockchain will not be held responsible for any direct or indirect losses incurred by investors in their trades.