- Trump’s reciprocal tariffs, beginning April 2, aim to create fairer trade conditions.
- Tariffs may lead to price hikes for U.S. consumers and disrupt industries.
- Bitcoin is showing signs of recovery, possibly reaching $90,000 with tariff adjustments.
US President Donald Trump’s upcoming tariffs will introduce a reciprocal policy, starting April 2nd. The new policy is designed in such a manner that it targets countries with higher tariffs on U.S. goods by imposing similar charges on their products. Economists caution that this could affect a broader range of countries than Trump’s previous trade policies, potentially leading to price increases for U.S. consumers. Trump stated,
“April 2nd is going to be liberation day for America. We’ve been ripped off by every country in the world, friend and foe,”
The intention behind these tariffs is to level the playing field and create fairer trade conditions. However, the immediate impact on various industries could be severe.
While the short-term effects of these tariffs might cause economic strain, some experts at WSJ believe the long-term results may favor the U.S. President Trump’s vision of bringing production back to America could become a reality if business taxes are reduced and bureaucratic red tape is cut.
Related: SEC Clarifies Proof-of-Work Crypto Mining Isn’t a Security, Offering Industry Relief
How Will New Tariffs Impact the Markets?
The new tariff policy could also cause market disruptions. Some analysts predict that gold might see a surge, while Bitcoin could experience a decline.
With this uncertainty, Bitcoin is trying to break out of its recent downtrend, supported in part by Trump’s tariff adjustments. As the quarter ends, the easing of arbitrage selling pressure and low funding rates are helping stabilize the crypto market.
Can Bitcoin Rebound to $90,000?
Bitcoin may have found its bottom and is aiming for a rebound toward the $90,000 mark. According to Markus Thielen, founder of 10x Research, Bitcoin’s recovery is being supported by Trump’s recent shift toward a more flexible approach on tariffs.
“Bitcoin is attempting to form a bottom, supported by Trump’s recent shift toward “flexibility” on the upcoming April 2 reciprocal tariffs, softening his earlier rhetoric,” the expert said.
Related: Bitcoin Speculative Trading Loses Steam: Is Trump’s Crypto Push to Blame?
Despite this optimistic outlook, Thielen also noted that there isn’t a clear catalyst for an immediate, rapid rally in Bitcoin.
He predicted that Bitcoin would not fall below $73,000, thus avoiding a “deep bear market,” due to strong long-term holdings by family offices and wealth managers. Additionally, the renewed inflow of funds into U.S.-based Bitcoin ETFs last week could further support Bitcoin’s price.
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