US lawmakers slam Trump’s 10% global tariff as an economic tax
US lawmakers, think tanks and legal experts criticized President Trump’s announcement of a new 10% global tariff, calling it effectively a tax on American families and businesses that could derail the economy. Senator Rand Paul and Representative Ro Khanna said the tariffs act as a tax increase and fund a “reckless trade war.” The move followed a Supreme Court decision limiting Trump’s authority under IEEPA; Trump responded by announcing the 10% global tariff to be imposed on top of existing Section 232 and Section 301 tariffs. Think-tank critic Scott Lincicome warned higher tariffs will likely persist, harming the economy and foreign relations. Pro-crypto attorney Adam Cochran noted legal limits on the statute cited, including application only to countries with trade deficits, a 150-day period and caps on rate. Markets showed muted crypto reaction: Bitcoin (BTC) rose about 3% after the announcement and the broader altcoin market (Total3) showed little movement. Traders should note the tariffs’ potential to increase costs for US businesses and consumers, raise inflationary pressure and influence risk-on assets; legal uncertainty and political response may prolong volatility.
Neutral
The announcement raises macroeconomic and policy risks that historically pressure risk-on assets, which would be bearish for crypto. However, the immediate market reaction was muted and Bitcoin rose ~3%, indicating traders priced in uncertainty or viewed the move as limited by legal constraints. Legal limits cited (IEEPA ruling, statutory caps, 150-day windows) and political pushback increase the likelihood of short-lived shocks rather than a sustained shock to liquidity. Short-term: expect elevated volatility around legal updates, trade rhetoric and data on prices/import costs; traders may see directionless swings and safe-haven flows into BTC in episodes of risk-off. Long-term: persistent higher tariffs would raise input costs, inflation and could slow growth — a macro drag that tends to be bearish for risk assets including many altcoins, while Bitcoin’s response depends on its narrative as inflation hedge or risk asset. Similar past events (US-China tariff escalations in 2018–2019) saw periods of crypto weakness followed by recovery as markets adapted. Overall, the market impact is mixed — immediate price moves modest, but heightened tail-risk until legal and policy clarity emerges.