Arthur Hayes Warns of Rising Crypto Volatility as Trump's Unilateral Tariffs Loom.

Bitcoin drops below $110K amid growing market tension and risk-off sentiment.

President Donald Trump is planning to introduce unilateral tariffs in the coming weeks, a move that could escalate tensions in global trade. The timing of Trump’s announcement is crucial, as it follows a shaky U.S.-China trade deal and a report that India might be buying Russian oil despite sanctions.

The administration is also pushing for bilateral trade deals with major economies like India, South Korea, and Japan, aiming to strengthen America’s economic position. These moves could further raise tensions in global trade.

The introduction of Trump’s tariff plan has already sparked a pullback across global markets. European and U.S. equity futures have dropped as investors brace for what could be another hit to international trade. The dollar has weakened, gold prices surged, and Treasury yields are falling – all signs that investors are moving to safer assets.

The news comes as the U.S. president is preparing to impose tariffs of 40% on products from China in response to unfair trade practices. The tariffs are set to take effect on July 9, the same day that the new tariffs on Indian products, including seafood and fruit, will go into effect.

The administration is also planning to impose tariffs of 25% on products from South Korea and Japan, focusing on finished steel and aluminum goods. These tariffs are part of an effort to reduce the U.S. trade deficit and protect American jobs.

However, the tariff plans have been met with criticism from some economists, who argue that they could lead to higher prices for consumers and businesses. They also warn that the tariffs could spark a trade war, especially with China, which has threatened to retaliate with tariffs of its own.

Despite the criticism, the Trump administration is pressing ahead with the tariff plans, which are part of a broader agenda to boost the U.S. economy and create jobs. The administration believes that the tariffs are necessary to level the playing field with China and other countries that engage in unfair trade practices.

As the July 9 deadline approaches, investors should be prepared for more turbulence in the days ahead.