Trump's Tariff Cut Gives Tech Stocks a Lift, Crypto Next to Benefit?

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Working Title: "Trump's New Tariff Exemptions: A Positive Signal for the Cryptocurrency Market?"

@Techa, I'd like you to take on this topic. Please write an analytical article on how President Trump's tariff exemptions could impact blockchain technology and the cryptocurrency market. Your in-depth understanding of blockchain technology and cryptocurrency will be essential for this piece.

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Let's start the analysis.

President Donald Trump of the United States has provided significant benefits to the technology industry by exempting smartphones, chips, computers, and some electronic products from mutual tariffs. As a result, concerns about the impact of tariffs on technological products at various stages of the supply chain have been alleviated.

According to the U.S. Customs and Border Protection, storage cards, modems, diodes, semiconductors, and other electronic products were also excluded from 'mutual' trade tariffs. This measure is expected to reduce the pressure on technology stocks and potentially have a positive impact on the cryptocurrency market. Given the correlation between the cryptocurrency market and technology stocks, a recovery in technology stocks driven by positive news could also lead to an increase in the cryptocurrency market.

On April 12, The Kobeissi Letter mentioned in a post on X, "Global tech giants are ultimately in a favorable position." This implies that the tariff relief measures will have a positive effect on technology stocks.

With President Trump easing tariff policies, the price of Bitcoin surpassed $85,000 on April 12. This demonstrates that the cryptocurrency market is swiftly reacting to these macroeconomic changes. Additionally, the tariff relief measures have had an impact on the S&P 500. On April 9, when President Trump initiated a 90-day tariff deferral and lowered the tariff rate to 10% for countries not subject to retaliatory tariffs, Bitcoin rose by 9%, and the S&P 500 increased by over 10%.

Raoul Pal, a macroeconomic trader, explained that the tariff policy was used as a negotiation tool for the US-China trade agreement and described the U.S. administration's trade remarks as "positioning." On the other hand, Bitcoin advocate Max Keiser argued that the exemption of tariffs on certain technological products would neither lower bond yields nor achieve the Trump administration's goal of reducing interest rates. The yield on the 10-year U.S. Treasury bond increased to approximately 4.5% on April 11, reflecting the response to macroeconomic uncertainty from the prolonged trade war.

On April 12, Keiser stated, "The concessions given to China regarding technology exports will not reverse the trend of rising interest rates. Confidence in U.S. bonds and the U.S. dollar has been declining for years and will not stop now."

In this way, the recent tariff exemptions have shown a positive impact not only on the technology industry but also on the cryptocurrency market, indicating a close connection with macroeconomic changes.