Trump’s reversal of tariffs continues to create drastic changes across financial markets, with no indication that it will stop. Many are tired of the projected slowdown in economic activity throughout the third quarter of 2025.
Unlike traditional markets, Crypto shows a different trajectory. Specifically, Bitcoin is separated from tariff news. Cryptocurrencies are expected to help alleviate trade uncertainties for individuals and businesses, according to CEO of Kronos Research.
Customs twists and turns
President Trump’s trade policy in 2025 is characterized by a recurring pattern of tariff threats decorated with reversals and expansions.
On Monday, President Trump announced mutual tariffs on 14 countries, with rates ranging from 25% to 40%. He also extended the wider tariff suspension until August. There is a mid-July deadline for potential trade transactions, with further negotiations expected.
“We feel that the world trade story is fragmented, and the US is constantly changing its attitude and making more demands,” a fan told Beincrypto.
In some cases, President Trump’s pushback proved effective. Last week, Canada quickly rescinded its Digital Services Tax (DST). This is a 3% collection of digital revenue generated within the borders – the day after the US suddenly halted all trade negotiations with the country.
This move was actively met by traditional financial markets, resulting in the Dow Jones industrial average and Nasdaq composite, bringing the S&P 500 to a new record. The Canadian dollar also remained relatively stable against the US dollar.
These latest announcements are viewed as leverage in ongoing negotiations rather than direct escalation, but significant volatility persists. Many of these create great uncertainty for businesses around the world.
Escalation costs for consumers and businesses
Among some aspects of Trump’s trade policy, the lingering minimum tariff rates for most US imports are directly related to increased consumer costs and reduced business profits. This collection 3-4 times higher than the pre-2025 rate, created a much more restrictive environment than companies were used to.
“Current baseline tariffs are a big economic drug. They will raise businesses’ costs, narrow profits, and raise consumer prices,” Huang said.
This significant increase represents earthquake changes for both consumers and business owners. Many companies rushed to stockpile products, parts and other imports after the Trump administration’s first tariff announcement in Canada, China and Mexico in February.
Still, these precautions can only be reached so far.
According to the Tax Policy Centre, the latest tariffs are set to surge in early August, with women’s clothing rising to 48%, books at 40% and baked goods at 22%.
Yale’s budget lab calculated that the average tariff charges faced by consumers reached 18%, the highest since 1934.
As a result, consumer prices will inevitably rise, profit margins will shrink, and the most affected by low- and middle-income households.
“The rise in import costs collides with every stage of the supply chain, forcing businesses to absorb fees and raise prices,” Huang elaborated.
However, amid so much chaos, Bitcoin has been able to resist the usual volatility associated with this level of uncertainty.
Is Bitcoin really disconnected from tariff news?
When Trump began his tariff frenzy in February, the cryptocurrency market responded negatively to inconsistent policy changes. Bitcoin fell below $80,000 that month for the first time since November 2024.
However, as trade reversals and policy adjustments continue, Bitcoin has recently appeared to be disconnected from its latest trade announcement.
“Bitcoin is being decoupled from tariff news because it is seen as a macro hedge rather than speculation,” Huang told Beincrypto, “To promote tariffs and market disruption, investors are leaning towards Bitcoin’s rarity and diversification, reducing their sensitivity to short-term trade changes.”
Following Monday’s announcement of adjusted tariff fees, major US stock indexes closed low. In contrast, Bitcoin’s value did not experience the same news.
Instead, it surged, reaching a new historic peak that exceeded today’s $118,000.
Meanwhile, the technology behind the cryptography itself helps individuals navigate tariff-induced economic panoramas.
Blockchain for supply chain resilience
Beyond Bitcoin’s price movement, blockchain technology offers practical solutions to individuals and businesses tackling market instability.
It avoids the tedious and opaque properties of traditional supply chains utilised by unpredictable trade policies.
“Blockchain enhances supply chain resilience by providing transparent, unchanging on-chain records of all transactions and shipments,” Huang explained, “this real-time visibility helps teams to spot bottlenecks, verify their sources and provide fraudulent solutions in a trade bankrupt world.”
Meanwhile, companies can instantly verify the origins of products, track products, ensure compliance, and avoid costly delays and penalties. This increased transparency allows for rapid adaptation to new regulations.
In this chaotic background, people continue to search for ways to stay on top of the water.
Such a context is inevitably a seductive option for those who see the technological solutions in favour of cryptocurrency worsening in the continued turbulence of economic outlook.
Post-Tax vs Bitcoin: How codes react to Trump’s trade war economy first appeared in Beincrypto.
