Reciprocal tariffs suspended, crypto market soars, and only China is caught in the crossfire

This old man Trump doesn't play by the rules~

Only one day after the reciprocal tariffs were imposed on the whole world, it was announced that it would be suspended for 90 days.

The market regarded this as a major easing signal, and the Nasdaq and S&P rebounded strongly.

It has to be said that cryptocurrencies are now considered US dollar assets, and US policies can almost completely influence the rise and fall of the market.

What's even more eye-catching is that four hours before Trump announced the suspension of tariffs, he publicly called for everyone to buy at the bottom!

Trump has single-handedly turned US stocks into cryptocurrencies, where calls can control the rise and fall.

And China, which just announced yesterday that it would implement an 84% retaliatory tariff on the United States, has increased the tax rate to 125%!

This time Trump is completely done with his showdown!

The so-called tariff trade war is purely for China. Other countries are just pretending, and they are only targeting China!

And the friends who had agreed to fight back against the United States have all given in.

Although the European Union also announced yesterday that it voted to impose a 25% counter-tariff on American products, it only involved $23.2 billion in goods, accounting for 6% of US exports to the European Union.

And the European Union has also made it clear that this retaliation for the 25% tariff on EU steel and aluminum exports is not aimed at the global reciprocal tariffs in April.

The current situation may have three impacts on the future trend of the crypto industry:

First, although the reciprocal tariffs have been suspended, the United States still imposes a 10% basic tariff on the world, and the 125% tariff imposed on China will also seriously affect the prices in the United States.

The Federal Reservewill not cut interest rates as long as inflation remains high, and believes that tariffs will be one of the reasons for rising inflation. Unless the labor market deteriorates or economic activity weakens (recession expectations), the Federal Reserve has no intention of cutting interest rates.

In other words, don't expect the Federal Reserve to cut interest rates in the short term.

The second point is that the spring of encrypted payment may be coming!

A hundred years ago, the United States implemented Prohibition, and the battle was much greater than the current increase in tariffs!

However, Prohibition not only failed to effectively reduce alcohol consumption, but instead became the most violent commodity for gangsters, and finally promoted the professionalization and organization of American gangs.

Now the tariffs affect a wider range of goods. If a large number of goods are smuggled into the US market by gangs, how will they pay for them?

It must be paid with cryptocurrency!

The third point is that if the tariff trade war against China becomes a protracted war, the RMB exchange rate will definitely be affected, and this may also affect RMB assets.