Are Donald Trump's Customs Duties a Big Bull for Bitcoin? Analysts Revealed the Truth

Last Saturday, US President Donald Trump issued three executive orders imposing universal customs duties on Mexico, Canada, and China based on the International Emergency Economic Powers Act (IEEPA).

However, ongoing diplomatic negotiations since that day have led to uncertainty about customs tariffs to be applied to Mexico and Canada. This move has sparked discussions about its economic effects and potential consequences on the long-term dominance of the US dollar.

Some analysts argue that the latest customs tariffs could accelerate a global shift towards alternative assets such as Bitcoin, as investors seek a safe haven amid increasing trade tensions.

James Butterfill, CoinShares Research Director, evaluated the issue as follows:

The share of the dollar in global trade is decreasing and the dollar is losing its status as a global reserve asset over time. If you put more rules like IEEPA, Bitcoin becomes a much more attractive option as soon as you do something that could destabilize the country's currency.

Butterfill emphasized the role of Bitcoin in balancing government policies by highlighting its unique network effects. 'Bitcoin keeps malicious governments in check and has network effects that no other currency has. There is a strong correlation between economic instability and the growth of Bitcoin,' he added.

According to Reuters, the Trump administration used IEEPA to bypass traditional trade legislation and justified tariffs as a response to a national emergency.

Cryptocurrency derivatives trader Gordon Grant also touched on the potential economic consequences by arguing that IEEPA measures could lead to a decrease in the value of the US dollar.

The dollar still acts like a safe haven from risks, but at some point in the medium to long term, considering the risks outlined by the IEEPA, would people want to hold the US dollar? All these factors can support self-sovereign, portable digital assets like Bitcoin.