Opinion: Why Trump's 'Liberation Day' Tariff Could Harm the Future of Crypto

Some experts believe that the announcement of Donald Trump’s upcoming “Liberation Day” tax is a reset of global trade and may have negative impacts on cryptocurrency. While much of the attention is focused on the political consequences and trade disruptions, the broader implications for digital assets and the global framework supporting them deserve closer examination. Heidi Crebo-Rediker, a senior fellow at the Council on Foreign Relations, recently described on Bloomberg TV that U.S. President Donald Trump’s plan is to “tear up” existing free trade agreements with America’s closest allies. This includes the so-called “Dirty 15”, a group of major trading partners that together account for 80% of U.S. trade. The system proposed by Trump, built on unilateral tariffs and non-tariff barriers, represents a complete departure from the cooperative global order that has shaped international trade for decades. Why Is This Important For Cryptocurrency? Cryptocurrency is inherently cross-border. Its infrastructure, users, capital flows, and legal frameworks depend on global connectivity and relatively open markets. Any shift towards economic fragmentation risks disrupting that process. Crebo-Rediker notes that countries like Canada have prepared to diversify away from the United States, gearing up for a restructuring of trade and investment relationships. In this new era, markets may become more closed, regulations more inconsistent, and capital controls more prevalent. She may agree (I don’t know), but all of these are hostile conditions for the adoption of cryptocurrency. She also warned about a broader withdrawal from multilateral frameworks that support both global finance and management cooperation. If the U.S. turns inward while allies look elsewhere, particularly to China, a country positioning itself as a defender of the global system, this could weaken Western influence over digital asset standards. Cryptocurrency supporters have welcomed Trump’s recent acceptance of stablecoins and digital finance, but they should be cautious. A fragmented world, with each country taking a different direction on trade and technology, is not a world where cryptocurrency can thrive. Forget about the scenario where Bitcoin surpasses Michael Saylor’s market capitalization of 200 trillion dollars, and we can only hope that it can maintain a valuation of 1 trillion dollars. If global coordination is eroded, then the prospects for the next wave of cryptocurrency adoption may also be eroded. If so, it is an exciting race. If not, I will gladly admit that I was wrong.