U.S. Lawmakers Warn Trump’s Tariff Push Will Ruin the U.S. Economy; What Is the Impact on the Crypto Market?

▲ Donald Trump, European Union (EU), Bitcoin (BTC) / AI-generated image

As the Trump administration pushes ahead with a 10% global additional tariff, clashing head-on with the U.S. Congress, the cryptocurrency market is emerging as a powerful alternative asset capable of responding to fiat currency depreciation and macroeconomic uncertainty, as well as a key indicator of liquidity flows.

According to Cointelegraph on February 22 (local time), U.S. President Donald Trump criticized the Supreme Court’s decision to invalidate the tariffs and reinstated duties on global imports under Section 122 of the Trade Expansion Act. Within Congress, concerns are mounting over deepening inflation and the risk of an economic downturn.

Democratic leaders, including House Financial Services Committee member Maxine Waters, strongly condemned Trump’s move as “an irresponsible action that will send consumer prices soaring and undermine the growth engine of the U.S. economy.” Senator Elizabeth Warren also warned that the tariff shock would ultimately burden working-class households, signaling potential legislative countermeasures.

Cryptocurrency investors are closely monitoring the impact that renewed political conflict and a potential trade war could have on major digital assets, including Bitcoin (BTC). Rising import prices caused by tariffs could intensify inflationary pressures and weaken the value of the U.S. dollar. In such an environment, Bitcoin’s appeal as “digital gold,” a store of value independent from traditional financial system risks, becomes more pronounced. Market experts anticipate that demand for decentralized assets will increase as macroeconomic instability escalates.

However, a contraction in global liquidity triggered by a tariff war could also exert short-term downward pressure on the crypto market. Tariffs may reduce global trade volumes and restrict capital flows, limiting liquidity entering risk-asset markets such as cryptocurrencies. Payment-focused assets like XRP, which emphasize efficiency in cross-border trade settlements, could face temporary growth slowdowns amid rising trade barriers. Investors are carefully analyzing liquidity trends and changes in government bond yields while refining their response strategies.

As legal and political battles between President Trump and Congress are expected to persist, volatility in the cryptocurrency market is likely to remain elevated for the foreseeable future. Treasury Secretary Scott Bessent maintains that the administration’s tariff policy is essential for protecting American industry, while Congress is reportedly considering legislation to restrict tariff authority. This policy standoff introduces unpredictable variables into the market and is prompting investors to turn their attention to crypto markets, which offer relatively transparent on-chain data compared to stocks or bonds.

Amid the latest tariff turmoil, the cryptocurrency market is positioning itself as more than a speculative asset class, emerging instead as a key barometer of macroeconomic health. As distrust in the fiat monetary system deepens, Bitcoin and major altcoins are increasingly viewed as economic moats that enhance portfolio stability. Financial experts worldwide are closely watching the impact of the Trump administration’s trade policies on the real economy and how the alternative value proposition of cryptocurrencies materializes, preparing for the arrival of a new economic order.

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