Trump threatens EU and Canada with increased tariffs - could the cryptoma market be further destabilized?

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Donald Trump threatens higher tariffs: effects on the cryptoma market

Donald Trump has warned the European Union and Canada that they have to expect even higher tariffs if they are trying to harm the US economy. This announcement could further destabilize the already volatile landscape of the cryptocurrency market. In a contribution to Truth, the former president expressed: "If the European Union works with Canada to add economic damage to the United States, large -scale tariffs are imposed - much larger than currently planned - to protect the best friend country that both have ever had!"

This threat follows earlier measures that Trump implemented at the beginning of the month. He introduced 25 percent tariffs on imports from Canada and Mexico as well as 20 percent of Chinese goods. Trump justified these decisions with security concerns, especially in connection with immigration and fentanyl smuggling. If the European Union and Canada are targeting, this poses new challenges for the markets. Customs usually increase the costs of imported goods, which can lead to inflation. This often forces central banks, such as the Federal Reserve, to a tighter monetary policy - a scenario that could burden cryptocurrencies like Bitcoin (BTC) at short notice.

Despite a short sale in Asia, some investors are optimistic. Jupiter Zheng from Hashkey Capital told Coindesk: "While US regulations become more restrictive, Asian institutions are driving growth with new funds, products and innovations, supported by pro-crypto laws." Zheng believes that Asia could possibly be the next epicenter of the bull market. Jeff Mei von BTSE added that Bitcoin had recovered despite falling stock markets and that the worst may be over. "We could soon see rising prices because the fear of inflation in the USA and get a closer look at interest in the US

The dealers are now focusing on the publication of the Personal Consumption expenditure (PCE) data on March 28, which could influence the interest policy of the Federal Reserve. The market showed mixed reactions: XRP and Solana (Sol) each lost 2%, while Ether (Eth) and BNB remained stable. Dogecoin (Doge), on the other hand, lost some profits after a previously 3.5 percent increase. A bright spot was the Sui Network’s Sui, which rose 7% before the Walrus protocol start.

Trump's "America First" rhetoric, which says: "America's liberation will soon come, we were except for almost every country", could intensify uncertainty among investors. A stronger US dollar, driven by customs policy, could continue to put BTC under pressure, since investors may flee in gold or cash. Nevertheless, experts in the pro-crypto developments in Asia see a potential balance to the challenges in the USA. The coming days will show whether the market is stabilized or whether further turbulence is imminent.