The rates war that Trump runs hangs like a thunder cloud above the global economy. Since his announcement of the levies, we have seen falls worldwide in both financial and cryptom markets. Now the White House is still busy with the last dots on the i, before the rates go live. On Wednesday evening an official announcement is planned in the Rose Garden, but the details remain uncertain until the last minute.
What do we know?
There are several plans on the table at Trump. Consider a stepped system where countries have to pay 10% or even 20% in import duties, depending on how they treat American products.
There is also a plan in which each country gets its own ‘customized rate’, and a global flat tax of 20% is also not excluded. What is chosen, one thing is clear: these taxes are spicy and can have a major impact worldwide.
The rates would enter into force immediately, possibly early on Thursday morning (New York time). Yet there is still room for negotiation. Countries that lower their rates on American products can perhaps count on relaxation.
Impact on the Netherlands
The economic uncertainty and possible increase in import costs can lead to inflation, falling growth and volatility in the financial markets. As consumers, we can see this in the prizes.
Yet we still seem to get rid of it fairly well in the Netherlands, experts say. For many companies from our own little country, the American market is only a small part of the total turnover. Anyway, we can’t be totally rested yet, the real impact will only become clear in the coming days.
Impact on the crypto market
And then, what does this mean for crypto? As long as there are no new unexpected announcements from the Trump Kamp, it seems to be not too bad. The taxes are already priced. For example, we already saw gigantic decreases in February. Donald Trump, however, remains unpredictable and we do not know whether he will come up with new and even more intense measures. But as long as this is not forthcoming, it could be good that we have already had the worst.
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Source: https://newsbit.nl/liberation-day-trumps-tarieven-zetten-wereldhandel-vandaag-op-scherp/
