Donald Trump, the US President, has granted a number of exemptions to tariffs on a variety of products, including smartphones, computers, chips and selected electronics. These are much needed reliefs for the technology industry.
According US Customs and Border Protection has also announced that storage cards and modems as well as diodes and semiconductors and other electronic products are exempt from current trade tariffs.
“Large-cap technology companies will ultimately come out ahead when this is all said and done,” Kobeissi is a letter wrote In an April 12, X posting.
US Customs and Border Protection announced that tariffs exemptions will be applied to certain technology products. Source: US Customs and Border Protection
This relief in tariffs will relieve the tech stock market, one of its biggest pressure points. casualties of the trade war. The crypto markets and tech stocks are closely correlated, with the latter possibly gaining in value as investors’ risk appetite rises on news of a positive trade war.
Bitcoin’s price has risen following the news regarding the exemptions from tariffs.BTC() broke through $85,000 on 12 April, a sign that the crypto market is already reacting to recent macroeconomic developments.
Related: Billionaire investor would ‘not be surprised’ if Trump postpones tariffs
When macroeconomic uncertainties are present, the markets will be influenced by Trump’s words.
President Trump walked back the sweeping tariff policies On April 9, the US initiated a 90 day pause in reciprocal tariffs, and reduced tariff rates for those countries who did not reply with counter-tariffs against US goods.
Bitcoin surged by 9% and the S&P 500 surged by over 10% on the same day that Trump issued the tariff pause.
Raoul Pal, a macroeconomic trader said that tariff policies are a tool for negotiation. establish a US-China trade deal The US trade rhetoric was described by the US government as “posturing.”
Max Keiser is a Bitcoin proponent who argues that exempting certain tech items from tariffs will not lower bond yields, or help the Trump Administration’s goals of lowering interest rate.
The yield on US 10-year government bonds has risen following the Trump administration’s trade policy. Source: TradingView
On April 11, bond investors responded to macroeconomic uncertainties caused by a prolonged trade war. The yield of the US Treasury Bond 10-years shot up as high as 4.5%.
“The concession just given to China for tech exports won’t reverse the trend of rates going higher. Confidence in US bonds and the US Dollar has been eroding for years and won’t stop now,” Keiser wrote On April 12,
This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.
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Source: cointelegraph.com
