Trump’s tariff escalation exposes ‘deeper fractures’ in global financial system

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Trump’s tariff escalations will “test the resilience of every asset class,” which may lead to a renewed appetite for safe-haven assets.

Escalating trade tensions and renewed uncertainty in global markets are driving investors toward alternative assets, including Bitcoin and tokenized real-world assets (RWAs), as concerns mount over the long-term stability of the financial system.

Global trade tensions continue pressuring investor sentiment despite US President Donald Trump announcing a 90-day pause on higher reciprocal tariffs on April 9, reverting the tariffs to the 10% baseline for most countries.

At the same time, Trump escalated his tariffs on Chinese goods from 104% to 125%, the Financial Times reported on April 9.

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