Cryptocurrency investors are striving to comprehend the unfolding events during one of history’s largest trade crises. The sensitivity to macroeconomic developments has surged following the transformation of cryptocurrency into something larger. Over the past three years, the repercussions of everything from PMI data to central bank meeting minutes have been observed on charts. Today, we find ourselves amidst a much larger phenomenon.

The U.S. Trade Imbalance

The U.S. import figures, which were around $2 trillion in the 2000s, have now surpassed $4 trillion. Since 1995, trade imbalance has skyrocketed, resulting in a substantial trade deficit against $3 trillion in exports. This imbalance is at the heart of the tariffs announced against all countries. Trump stated that the U.S. economy has been exploited for years due to unfair tax policies, and this nightmare will end with more equitable tax rates.

Canada and Mexico are exempt from mutual tariff regimes, yet they continue to face a 25% tariff on a significant portion of their exports to the U.S. The trade balance with China stands at -$295.4 billion, while it’s -$235.6 billion for the European Union and $171.8 billion for Mexico. The primary contributors to this trade deficit include machinery and automobile imports, with electronics being the largest c...