Trump Hikes Global Tariffs to 15–50% and Unveils US AI Plan
Former President Trump announced a sharp hike in global tariffs, raising them from 10% to between 15% and 50%. Japan agreed to cut its tariffs on US imports to 15% after pledging $55 billion in investments. Trade talks with the EU, South Korea and India continue ahead of an August 1 deadline. At the same briefing, Trump unveiled the US AI Action Plan, prioritizing government contracts for leading large language model developers, easing environmental approvals for data centres, and boosting power grid infrastructure. The plan aims to onshore AI chip manufacturing and invest in alternative energy, including nuclear fusion. Crypto traders should watch for volatility from supply chain disruptions and tighter data centre regulations, as well as potential benefits for onshore mining hardware production. Heightened tariffs may trigger retaliation and affect global markets. Stay alert for policy updates that could impact trading strategies and risk appetite.
Bearish
The global tariffs hike adds uncertainty to supply chains, raising costs for importing mining hardware and tech components in the short term. Tighter data centre rules may also constrain crypto mining operations. Although onshoring AI chip production could benefit domestic hardware suppliers in the long run, the immediate outlook points to increased volatility and higher operating expenses for miners and traders, weighing on market sentiment.