#BTC

US Threatens Full Tariff If No Negotiation, Crypto on the Edge?
The President of the United States (AS) Donald Trump will impose import tariffs, as happened last month, if trading partner countries refuse to negotiate in good faith.
"President Donald Trump will impose tariffs as he threatened last month if countries do not negotiate in good faith," said U.S. Treasury Secretary Scott Bessent in a video uploaded by Reuters on Monday (19/05).
However, the pro-crypto man did not explain in detail what he meant by negotiating honestly, nor when the old rates would be reinstated.
This is because Trump had previously softened his stance by reducing tariffs on most imported goods to 10% for 90 days starting from April 9.
However, if the reintroduction of tariffs is announced, this move has the potential to exacerbate global economic uncertainty. Moreover, it will likely lead to a drastic increase in volatility in the crypto market.
As is known, Bitcoin (BTC) often experiences price spikes when the dollar weakens due to trade tensions. However, on the other hand, extreme uncertainty can also cause investors to withdraw their funds from high-risk assets, including crypto, in order to maintain liquidity.
For example, during the height of the tariff war in early April, Bitcoin briefly plummeted to around US$75 thousand. Meanwhile, Ether (ETH) also fell to around US$1,500 during the same period.
I see this US tariff threat as a double-edged sword for the crypto market. In the short term, global economic uncertainty is likely to trigger a decline in the price of Bitcoin and other crypto assets due to its speculative nature still perceived by many investors. However, in the long run, if the trade war weakens the dollar or drives inflation, Bitcoin has the potential to benefit as an alternative asset. Trump's pro-crypto stance could be a positive catalyst, but investors must remain cautious of volatility triggered by inconsistent policies or retaliatory responses from US trading partners. In other words, the crypto market is not on the "brink," but is facing a period of turbulence that requires careful and disciplined investment strategies.