The trade war between the USA and China does not seem to slow down anytime soon. Today, Donald Trump announced a major tariff hike on $550 billion Chinese goods. He tweeted that he is raising the taxes because of China’s decision to put new taxes on $75 billion of American goods.
Trump announced that $250 billion worth Chinese goods which were taxed at 25% will now be increased to 30%. And other $500 billion Chinese goods which were previously taxed 10% now will be taxed at 15% from 1st October. Trump claimed that China’s decision to raise taxes on American farm products and automobiles was politically motivated. Both the countries are not ready to back down, leaving economic situations in both countries in a turmoil. Trump previously alleged China of manipulating currency deliberately. As trade war reaches new heights impacts on the whole financial market can be seen clearly.
What does it mean for BTC?
Several economic experts have warned people of a global economic recession, and this trade war might be the reason to trigger it. Many from the crypto community have pointed towards the trade war for the recent hike in the price of Bitcoin. Circle CEO Jeremy Allaire also credited global economic and political tensions for the rise of bitcoin. There have been recent debates over how BTC is playing the role of a safe haven for investors who are losing trust in the traditional investing market. It would only be fair to say that this new announcement by President Trump will help the Bitcoin market as more and more investors will look to buy bitcoin. If the trend is followed here, we might expect another jump in bitcoin’s price.