How will Trump's raising of tariffs and holding of a crypto summit affect the market outlook?

The current crypto market is volatile, and Trump has become the biggest variable in the market. This will remain the case for a long time in the future, and it is impossible to predict the market according to normal logic. StarEx Exchange analysts believe that Trump's tariffs, the Federal Reserve's monetary policy, and the performance of US stocks have become the focus of attention of institutions. Trump's increase in tariffs has caused global concerns about economic depression, leading to a market decline, while he held a crypto summit to promote strategic reserves, and the market soared again. So what impact will it have on the market outlook?

Tariff concerns:

US President Trump announced that he would impose reciprocal tariffs on April 2 and impose a 25% tariff on Mexican and Canadian goods , which will take effect on March 4. Currently, Trump's plan has an average tariff rate of 20% . In response, China's State Council Tariff Commission stated that starting from March 10, 2025 , a 10%-15% tariff will be imposed on some imported goods originating from the United States . Other countries may also take similar measures one after another, and the situation of the global trade war is continuing to escalate.

On the surface, such a tariff level may not directly lead to a global economic recession, but Trump's series of unpredictable measures have caused deep concerns in the market. He has taken tough measures in many areas such as tariffs, geopolitics, and financial markets to promote " isolationist " policies. However, the United States has tried isolationism in history, especially between 1920 and 1930 , which eventually led to the Great Depression of 1929 with disastrous consequences. The US economy has long relied on international trade, high-tech giants rely on globalization to make profits, and the international status of the US dollar is built on the global market. Trump's strategy of trying to force other countries to make concessions through tariffs has plunged the world into uncertainty .

Looking back at history, during the Great Depression, US President Hoover proposed three major policies: expelling immigrants to protect local jobs, raising tariffs to prevent the influx of foreign goods, and reducing taxes to stimulate industrial recovery. However, these policies failed to reverse the downward trend of the economy. It was not until Roosevelt launched the New Deal that the US economy began to recover. Hoover is considered one of the most failed presidents in US history, and his policies have many similarities with Trump's propositions.

StarEx Exchange analysts believe that Trump is essentially a businessman, and his tax increase policy may just be a strategy to pressure negotiations. If countries are willing to make concessions, the situation may be eased. But if he insists on his own way and insists that tax increases can benefit the United States, the global economic outlook will become bleak. The global investment market has shown obvious concerns about this uncertainty, especially the U.S. stock market, where the highly valued stock market is more vulnerable under the shadow of the trade war.

If Trump's policies continue, the collapse of the US stock market may become a catalyst for the Fed to intervene. The key to the current market is when the Fed's monetary policy will substantially shift. If the US stock market enters a bear market, its time window for digesting adjustments may extend to the end of the year.

Benefits of Crypto Summit:

On the 7th , Trump hosted a crypto summit at the White House in the United States. Due to the previous warm-up, the market speculated that this summit might substantially promote the strategic reserve of cryptocurrencies. A number of cryptocurrency project leaders attended the meeting, including the CEOs of Crypto.com and Ripple , executives of Coinbase , Robinhood and other companies, and White House officials included Bo Hines (Executive Director of the Presidential Digital Asset Commission), David Sacks (Head of Artificial Intelligence and Cryptocurrency Affairs), Mark Uyeda ( Acting Chairman of the U.S. SEC ), Caroline Pham ( Acting Chairman of the U.S. CFTC ) , etc.

At the same time, the tokens of the participating projects and the Trump family-related tokens have all seen significant increases, such as: xrp , ada , sol , move , ondo , etc.

StarEx exchange analysts believe that Trump's orders will boost the market in the short term, but the long term still depends on the inflow of institutional funds. If these institutions use Trump's orders to raise prices and cash out, it will have a certain negative impact on the industry. For ordinary investors, it is better to enter the market at a low point.