President Donald Trump’s long-promised tariffs, after weeks of delays, have finally been implemented. For example, there are currently 25% tariffs on our trade (and continental) partners Canada and Mexico, a blanket tariff of 20% on China and an additional 25% tariff on steel and aluminum imports from all countries, per Yahoo Finance.
Many — economists, Democrats, other governments — have expressed deep concerns that tariffs will alienate America’s trade partners as well as increase prices on countless goods. President Trump, meanwhile, has asserted that tariffs will actually grow the U.S. economy and stimulate sales for American companies.
Read More: Trump Wants To Replace Income Taxes With Tariffs — 2 Impacts on the Middle Class
Consider This: 6 Subtly Genius Moves All Wealthy People Make With Their Money
Tariffs have the ability to impact nearly every aspect of the economy in major ways, even cryptocurrency. Here’s how.
Tariffs Have Sent Bitcoin Crashing
Ever before the tariffs were implemented, the mere threat of them sent crypto prices spiraling precipitously in February due to fears regarding possible trade wars with Canada, China and Mexico, as reported by AP News.
Meanwhile, Bitcoin initially managed to be somewhat resilient when compared to riskier (but still popular) cryptocurrencies like Dogecoin, but even Bitcoin eventually felt the weight of Trump’s tariffs, with BNO reporting that it finally fell below $80,000 in March.
Tariffs Have Made Bitcoin Value Unpredictable
Tariffs have made crypto values something of a rollercoaster ride, with the February and March crashes followed by rebounds so significant that stabilization seemed to have returned — only for another crash to occur. Given the unpredictability of the tariffs — and President Trump’s unpredictable nature — have also made Bitcoin unpredictable, as well. What rebounds on Monday could just easily bottom out by Friday.
What’s Next?
Regarding Bitcoin’s future, the Times of India reported Bitcoin critic and experienced investor Peter Schiff has warned that the cryptocurrency could be facing a significant decline in the near future should Nasdaq experience a bear market.
He noted that Bitcoin prices parallel Nasdaq’s (and U.S. technology stocks), and that the crypto has already begun to stumble along with Nasdaq’s recent 12% decrease. Further, he noted that our current market instability (an instability caused in part tariffs) could mirror prior market crashes like the 2008 financial crisis and the COVID-19 pandemic. Were that to happen, Bitcoin could crash below $20,000.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
- 5 Types of Vehicles Retirees Should Stay Away From Buying
- 6 Subtly Genius Moves All Wealthy People Make With Their Money
- 4 Things You Should Do if You Want To Retire Early
- 7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month
This article originally appeared on GOBankingRates.com: 2 Ways Trump Tariffs Have Impacted Bitcoin Price, and What Experts Predict Next for the Crypto
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
