Tariffs vs Bitcoin: The cryptocurrency response to Trump's policies

The continuous reversal of tariff decisions by President Donald Trump is continuing to shake up the global financial markets, with no signs of stopping. Many experts warn of the risk of a decline in economic activity in Q3/2025.

However, unlike traditional markets, the cryptocurrency market — especially Bitcoin — is showing a distinct direction, almost independent of fluctuations from tax policies. According to CEO Huang of Kronos Research, cryptocurrencies can serve as a solution to help alleviate uncertainty in trade for both individuals and businesses.

Surprising tax policy

The trade policy of President Trump in 2025 is characterized by a series of actions of "threat - delay - reverse" continuous tariffs.

On Monday, Mr. Trump sent a letter imposing countervailing duties on 14 countries, with tax rates ranging from 25% to 40%. At the same time, he also extended the suspension of larger tax packages until August. Further negotiations are being planned, with a deadline in mid-July to finalize potential trade agreements.

"Global trade negotiations are becoming fragmented as the U.S. continuously changes its stance and demands more," Mr. Huang shared.

Some cases show that Trump's pressure is effective. Last week, Canada quickly canceled the (DST) digital services tax — a 3% tax on digital revenue — just one day after the U.S. unexpectedly suspended all trade negotiations with the country.

This information has caused traditional financial markets to react positively. The Dow Jones and Nasdaq both increased, while the S&P 500 reached a new all-time high. The Canadian dollar also maintained its value against the USD.

However, many experts believe that these statements are more of a negotiating strategy than a direct escalation. Nevertheless, the widespread uncertainty is still causing significant upheaval and making it difficult for global businesses.

The burden of costs is increasing

One of the most concerning factors in Trump's trade policy is the minimum tax of 10% on most imports into the U.S. – three to four times higher than the period before 2025.

"The current basic tax rate is a serious economic barrier. It drives up business costs, erodes profits, and causes consumer prices to soar," Mr. Huang commented.

This sudden change has caused many businesses to panic, rushing to stockpile goods and components right after the Trump administration announced tax measures in February targeting Canada, China, and Mexico. However, these response measures can only provide short-term support.

According to the Tax Policy Center, the new tax rates will begin to rise sharply from the beginning of August, including 48% on women's clothing, 40% on books, and 22% on baked goods. Meanwhile, the Budget Office of Yale University calculates that the average tax burden on American consumers has now reached 18% – the highest since 1934.

The impact of tariffs on consumer goods | Source: Tax Policy CenterAs a result, consumer prices continue to rise, corporate profits shrink, and low to middle-income households are the most heavily affected.

"The increase in import costs affects the entire supply chain. Businesses are forced to bear losses or raise selling prices," Mr. Huang added.

Bitcoin detached from tariff news?

When the wave of tariffs began in February, the cryptocurrency market reacted negatively to the continuous changes in policy. At that time, the price of Bitcoin even fell below 80,000 USD – the lowest level since November 2024.

However, over time, as reversal decisions became increasingly common, Bitcoin began to show "immunity" to tariff news. Some analysts suggest that Bitcoin is becoming a macro hedge tool rather than just a speculative asset.

"Bitcoin is decoupling from tax news as it is seen as a scarce, decentralized asset that helps hedge against inflation and policy risk," Huang explained.

While U.S. stock indices fell after the new tax announcement on Monday, the price of Bitcoin surged, surpassing the 118,000 USD mark – setting a new historical peak.

Blockchain – a solution to cope with trade crises

In addition to price volatility, blockchain technology also provides practical solutions for businesses and individuals struggling in an unstable trade environment.

Blockchain helps overcome the inherent limitations of traditional supply chains, which are often opaque and susceptible to changing policies.

"Blockchain provides transparent and immutable tracking for each transaction and shipment in the supply chain," Mr. Huang said. "Real-time transparency helps identify bottlenecks, verify origins, and reduce fraud – particularly useful in a world full of trade risks like today."

Businesses can verify product origins, track goods in real-time, and avoid unnecessary fines or delays. This creates the ability to quickly adapt to new regulations.

In the context of prolonged economic instability, many people are gradually turning to technology solutions related to cryptocurrency to protect their financial future.

Thạch Sanh