- Trump’s anticipated tariff announcement is already impacting global markets, with China imposing investment restrictions, signaling the beginning of deeper trade tensions between the two nations
- Expectations point to sweeping tariffs on vehicles, steel, aluminum, and Chinese imports, further escalating economic uncertainty and potentially triggering a cycle of retaliatory trade policies
- The restriction on outbound Chinese investments could disrupt U.S. crypto funding and mining supply chains, raising concerns about long-term stability and regulatory shifts in the industry
The dreaded “Liberation Day” is finally upon us. On this day, United States President Donald J. Trump is expected to announce and put into full effect a set of tariffs under his “America First” agenda.
Still, five hours before the official announcement, the upcoming statement by the U.S. President is already having an effect on macroeconomic politics. As the world watches what could be the very start of an all-out trade war — opposing nations are already making moves to retaliate against Trump’s tariffs.
Expectations are that Trump will announce a new set of tariffs this afternoon. Although not confirmed, the market is anticipating reciprocal tariffs against countries that impose higher taxes on American imports, an all-around 25% tariff on vehicles not made in the United States, another 25% tariff on steel and aluminum imports, and 20% duties on all imports derived from China.
This morning the President of the People’s Republic of China, announced a counter-active measure to retaliate against the U.S. — imposing a hefty restriction on Chinese companies investing in America.
According to Bloomberg’s report, the Chinese National Development and Reform Commission (NDRC) is already working on barring or halting applications for firms seeking to invest in America.
Reasoning Behind The Ban
Although this is all speculation, mind you, China may have acted quickly to counter Trump’s policies to shield domestic production. Though the restriction does not apply to prior investments or U.S. Treasuries, it seems primarily intended to prevent companies from relocating abroad to dodge tariffs.
How This Can Affect Crypto
The repercussions of this move, and the fact that it will most likely not go unanswered by the U.S. will most likely have an effect on the cryptocurrency market moving forward.
For starters, if the move somehow affects the supply of mining hardware, which in its majority is produced in China. Also, Chinese venture capital firms have historically backed U.S.-based crypto startups. If they can’t invest, some projects might struggle to secure funding, slowing innovation.
While the immediate impact may be limited, the broader uncertainty created by these restrictions could influence market sentiment and drive shifts in how crypto firms operate globally.
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