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crypto.news 2025-03-28 20:19:10

Opinion: Why Trump’s ‘Liberation Day’ tariffs may hurt crypto’s global future

Donald Trump’s upcoming “Liberation Day” tariff announcement is being framed by some experts as a reset of global trade and could have negative implications for crypto. While much of the attention is focused on the political fallout and trade disruptions, the broader consequences for digital assets, and the global frameworks that support them, deserve a closer look. Heidi Crebo-Rediker, senior fellow at the Council on Foreign Relations, recently described on Bloomberg TV U.S. President Donald Trump’s plans as a “tearing up” of existing free trade agreements with America’s closest allies. This includes the so-called “Dirty 15”, a group of major trading partners that together make up 80% of U.S. trade. Trump’s proposed system, built on unilateral tariffs and non-tariff barriers, represents a complete shift away from the cooperative global order that has defined the last several decades of international trade. Why does this matter for crypto? Crypto is inherently cross-border. Its infrastructure, users, capital flows, and regulatory frameworks depend on global alignment and relatively open markets. Any shift toward economic fragmentation risks disrupting that progress. Crebo-Rediker notes that countries like Canada are already preparing to diversify away from the U.S., bracing for a reconfiguration of trade and investment relationships. In this new era, markets could become more closed, regulation more inconsistent, and capital controls more common. You might also like: https://crypto.news/stablecoins-and-oil-are-trumps-macro-weapons-says-devere-ceo/ She may agree (I don’t know), but these are all hostile conditions for crypto adoption. She also warns of a broader retreat from the multilateral frameworks that underpin both global finance and regulatory cooperation. If America turns inward while allies look elsewhere, especially towards China, which is positioning itself as a defender of the global system – it could weaken the West’s influence over digital asset standards. Crypto advocates have cheered Trump’s recent embrace of stablecoins and digital finance, but they should be cautious. A fragmented world, with each country pulling in a different direction on trade and tech, is not a world where crypto can thrive. Forget about Michael Saylor’s vision of Bitcoin surpassing a $200 trillion market cap and we can only hope it can hold on to a $1 trillion valuation. If global coordination erodes, so too might the prospects for crypto’s next wave of adoption. If so, it was a fun run. If not, I’ll be glad to admit being wrong. You might also like: Top 3 crypto tokens to survive Donald Trump’s tariff war: Bitcoin, Dogecoin, XRP

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