In the US, these tariffs are expected to raise production costs for industries such as oil, lumber, minerals, and automotive manufacturing, potentially adding up to $3,000 to the price of some cars. This could lead to higher consumer prices and increased inflation. The Federal Reserve has expressed caution about cutting borrowing costs due to the uncertainty surrounding these tariffs.
Additionally, the tariffs could disrupt supply chains and lead to retaliatory measures from trading partners, further complicating the economic outlook.
A reversal of this trend could occur if these countries manage to strike a deal or if President Trump decides to remove the tariffs, although this seems unlikely at the moment. In light of these developments, we recommend maintaining an off-risk bias on the crypto markets.