The impending “Liberation Day” tariff announcement from Donald Trump is being interpreted by some experts as a potential turning point in global trade, which may pose challenges for cryptocurrency.
While the predominant focus is on the political repercussions and disruptions in trade, it’s essential to examine the wider effects on digital assets and the international structures that support them.
A senior fellow at a prominent think tank recently described on Bloomberg TV President Trump’s intentions as a “tearing up” of current free trade agreements with the U.S.’s key allies. This includes the so-called “Dirty 15,” a coalition of major trading partners responsible for 80% of U.S. trade.
Trump’s proposed framework, which is founded on unilateral tariffs and non-tariff barriers, signifies a radical departure from the collaborative global order that has characterized international trade for decades.
What are the implications for cryptocurrency?
Cryptocurrency operates on a fundamentally cross-border basis. Its ecosystem, comprising infrastructure, users, capital flows, and regulations, is reliant on global cooperation and relatively open markets. A move toward economic fragmentation could jeopardize that trajectory.
The expert highlights that nations like Canada are already initiating steps to reduce dependence on the U.S., preparing for a realignment of trade and investment dynamics. In this new landscape, markets may become more insular, regulatory frameworks more variable, and capital controls more prevalent.
This might present adverse conditions for the growth of cryptocurrency adoption. There’s also caution regarding a general retreat from the multilateral frameworks that support both global finance and regulatory collaboration.
If the U.S. turns inward while its allies seek alternatives—particularly towards China, which is positioning itself as a champion of the global system—it could undermine Western authority over digital asset standards.
Despite some crypto supporters celebrating Trump’s recent support for stablecoins and digital finance, they should remain vigilant. A fragmented global environment, with nations moving in disparate directions regarding trade and technology, is not conducive for the flourishing of cryptocurrency.
Forget about any optimistic projections of Bitcoin eclipsing a $200 trillion market cap—let’s just hope it manages to maintain a $1 trillion valuation.
Should global collaboration decline, so too could the possibilities for the next wave of cryptocurrency adoption. If that happens, it’s been an exciting journey. If not, I’ll be more than happy to concede my error.