The latest tariffs from Donald Trump, revealed on “Liberation Day,” have sparked uncertainty across international markets. Experts in the crypto space shared their insights on the matter.
While some analysts express concern over potential economic repercussions, leaders within the cryptocurrency sector view the situation as a source of short-term upheaval coupled with long-term possibilities.
The proposed tariffs specifically target key trading partners of the U.S., implementing import duties to pressure negotiations. This strategy aligns with Trump’s historical trade approaches, utilizing economic strain to secure advantageous agreements for the U.S. economy.
A proposed baseline tariff of 10% would place the U.S. among the developed nations with the highest tariffs, similar to places like Argentina (11.4%) and Brazil (12.1%).
Prior to this announcement, U.S. tariff rates averaged 3.4% in 2024, significantly beneath the global weighted average of 8.6%. For comparison, China’s average tariff rate stood at 7.3%, while the European Union’s average was 5.1%.
Market response and crypto’s stance
Mateusz Kara, CEO and co-founder of Ari10, believes the main concern lies not with the tariffs, but rather with the uncertainty they generate.
“I think we shouldn’t fret about the tariffs that Trump aims to implement. The markets are on the lookout for certainty – they want to know the specifics regarding tariffs and their amounts. Once they have that, the market will adjust – we could see either short-term drops or immediate rises,” he said in a statement.
Kara highlighted that the unpredictability associated with Trump’s decisions has had a more significant impact on markets than the tariffs themselves and perceived a strategic dimension in Trump’s tactics.
“Trump is likely to continue manipulating tariffs as a negotiation tool, which might eventually lead to reductions. To put it simply, a skilled negotiator like Trump will start with high tariffs and then lower them in exchange for favorable trade terms for the U.S.,” he added.
Deliberate use of ‘classic’ business strategies
Gus van Rijckevorsel, CEO of Ultra, suggests that Trump’s forceful tactics are a calculated method to stir up instability before pursuing new trade agreements.
“Liberation Day is Trump’s strategy of applying traditional business methods to global trade markets,” the CEO noted. “His aim is to rattle U.S. trade partners significantly and create as much tension as possible before he is ready to negotiate. While it might be an unscrupulous business approach, it can be effective if managed properly.”
Van Rijckevorsel expects ongoing volatility in the coming period but also recognizes that Trump will likely need to relieve some pressure and engage in negotiations. He likens Trump to a “firefighter, extinguishing the blazes of his own creation.”
Despite the immediate instability, van Rijckevorsel sees potential advantages for the crypto sector. He commented:
“For broader institutional acceptance, the cryptocurrency markets need to face challenges to demonstrate their resilience under pressure. However, we’re starting to observe positive signs indicating the market is progressing favorably.”
Tariffs and the role of the U.S. dollar
Marcin Kazmierczak, co-founder and COO of RedStone, examined how these new tariffs might influence the global standing of the U.S. dollar.
He remarked that in many instances, aggressive tariff strategies yield mixed results, initially bolstering the dollar as investors flock to safe-haven assets amid uncertainty.
“In the long run, these effects could threaten dollar supremacy if major trading partners choose to decrease their dollar reserves, other currencies gain popularity for international commerce, or inflation diminishes confidence in the dollar’s stability,” Kazmierczak said.
Regarding the crypto landscape, Kazmierczak envisions a more intricate pathway ahead. Policies that might undermine the dollar’s dominance “could spur greater interest in decentralized alternatives” over time.
Trump’s appeal to negative aspects of crypto
As the markets process Trump’s recent trade strategies, the cryptocurrency space remains one to watch closely. Van Rijckevorsel noted Trump’s influence on the more speculative dimensions of crypto.
“Trump tends to attract the less favorable characteristics of the crypto market,” he commented. “He has contributed to market immaturity by inundating it with tokens lacking intrinsic utility, all in pursuit of quick profits.”
Nonetheless, he contends that this speculative phase is now evolving towards more sustainable models. Importantly, “memecoin fatigue” is helping to “eliminate the fake tokens” and shift focus towards assets that emphasize real value and utility.
While short-term fluctuations are anticipated, experts like Kara, van Rijckevorsel, and Kazmierczak propose that the crypto sector could emerge more resilient, with enhanced trading dynamics and a renewed focus on utility-driven assets.