Trump’s Recent Engagements and Tariff Discussions
Trump recently met with Ukraine’s President in Italy and is continuing bilateral talks with Italy. During this period, he remains active on his social media, addressing critical issues of tariffs that are extremely significant for cryptocurrency investors. The Treasury Secretary has also made a statement regarding these tariffs.
Key Insights on Tariffs
One clear assertion is that Trump intends to make tariffs permanent. He will not do this using the current high rates, but he will compel countries to make mutual sacrifices to balance the trade deficit.
In a recent social media post, he mentioned that the “external income service,” or tariffs, is being activated to help Americans live more prosperous lives with lower taxes.
“When tariffs are activated, many people’s Income Tax will significantly decrease, possibly even disappear. The focus will be on individuals earning below $200,000 annually. Moreover, numerous jobs will be created with new facilities and factories currently under construction or planned. This will be a tremendous boon for America!!! THE EXTERNAL INCOME SERVICE IS ACTIVE!!!”
The extent of relaxation remains uncertain, and it’s possible for the U.S. to encounter a Chinese trade bloc. Although the U.S. remains strong militarily and politically, imposing unacceptable demands could strengthen opposition against it. Furthermore, China has made significant technological advancements, no longer resembling its former self.
Huawei is developing a new artificial intelligence chip (Ascend 910D). China’s electric vehicles are spreading globally, indicating that we are dealing with a China that can compete with the U.S. in various sectors.
Cryptocurrency and Tariffs
A crucial aspect is that the declining tensions with China are moving toward an official agreement. Xi from China is expected to visit the U.S. in June, but preliminary agreements and phone discussions must occur first.
U.S. Treasury Secretary Bessent stated just minutes ago;
“I met with my Chinese counterpart in Washington last week. I believe there is a pathway to an agreement on customs tariffs with China. The goal is to maintain the U.S. bond market as the world’s safest and strongest market. Trade discussions with Asia are progressing positively. Consumer spending data does not indicate any serious issues.”
While these details are positive for cryptocurrencies, we need to see more progress. As June approaches, at least some groundwork must be laid for signing an agreement.
