Trump released a significant tariff bomb in the early hours of Beijing time.

Previously, he focused on China, Canada, and Mexico, but now he has finally turned his attention to the whole world: indicating that he wants to impose taxes on the entire world!

The specific plan is as follows:

1. Implement a basic tariff of 10% on all countries, officially effective from April 5.

2. Trump believes that for countries with high tariffs on the U.S., a '50% discount' reciprocal tariff will be applied, officially effective from April 9.

According to Trump's calculations, the tariffs of various countries are as follows:

Everyone's focus is definitely on China, and I don't know what algorithm Trump is using to calculate China's tariffs on the U.S. to be as high as 67%!

It might be using this kind of algorithm:

Trump has already imposed tariffs on China twice during his current term, making the basic tariff rate from the U.S. to China 30%; during his previous term, he also imposed tariffs on some goods, so after two terms, the tariffs from the U.S. to China have reached around 34%.

Therefore, Trump concludes that China's tariff on the U.S. is 67%, likely by multiplying the U.S. tariff rate on China by 2, thereby portraying China’s high tariffs to rationalize America’s reciprocal measures.

It is said that this 34% is an additional increase on top of the previous basis, aimed at severely impacting the Eastern powers!

However, the global reciprocal tariff table released by Trump does not include Mexico and Canada, the main countries involved in the trade war a few months ago.

Currently, it seems that Trump’s trade war with China, Canada, and Mexico may have reached a pause, as these three countries contribute nearly half of the U.S. import volume.

After the automatic release of Trump’s tariff bomb, the recovering trend of cryptocurrencies has once again plummeted.

We mentioned this tariff bomb in a previous article (The cryptocurrency market is about to face a major shock! These two coins can be focused on~)

But overall, this tax increase will still have a short-term impact on cryptocurrencies, as tariffs push up the value of the dollar (other countries' currencies are affected and depreciate), which may suppress the prices of Bitcoin and other cryptocurrencies in the short term.

Even so, the U.S. is still printing dollars like crazy, and the House of Representatives has just passed the federal budget framework for the fiscal year 2025, which is expected to increase the deficit by another trillion dollars, pushing the deficit scale beyond 20 trillion dollars.

And through the so-called 'budget coordination mechanism,' it allows for legislative increases in the deficit, enabling the U.S. government’s deficit to reach a maximum of 4.5 trillion dollars.

It's important to know that the U.S. government's total annual revenue is only 6 trillion dollars!

So in the long run, it is still beneficial for Bitcoin as a reserve asset.

It appears that after the U.S. imposes tariffs globally, the next step for Trump will be to initiate a tax reduction wave domestically.

Because Trump's main economic policy is: 'Eliminate income tax and replace it with tariffs.'

The TCJA signed by Trump during his first term reduced individual income tax rates, increased the standard deduction, and adjusted corporate tax rates (from 35% to 21%), which at that time led to a large-scale rise in the U.S. stock market.

In this term, because Trump strongly supports crypto assets, it is believed that many U.S.-supported tokens will share the dividends of domestic tax reductions.