Kalam Crypto #150: Tariff Wars & Bitcoin in the New Economic Order

“Nothing stops this train.” Lyn Alden

Ahlan wa sahlan, and welcome to the 150th edition of CoinMENA’s weekly newsletter, Kalam Crypto!

This week, we deep dive into the unprecedented global market volatility triggered by the U.S.-instigated tariff wars. What began as a push by President Trump to “rebalance” trade has quickly escalated into a worldwide economic standoff, rattling markets, disrupting supply chains, and throwing decades of global trade policy into question.

In this edition, we’ll break down what’s happening, explore the broader macroeconomic implications, and, as always, zoom out to discuss what it all means for Bitcoin.

TLDR: We’re witnessing the unwind of the post-WWII economic order. President Trump has imposed sweeping tariffs on virtually all U.S. imports—10% baseline, with China, the EU, and others hit even harder. Retaliation has already begun. Markets are reeling. And beneath the headlines, a deeper story is unfolding: the collapse of the decades-long system where the U.S. exported dollars, imported goods, and everyone played along.

All roads now lead to the same endpoint: money printing. The Fed faces two choices: total collapse or buy everything (cue the money printer). Either outcome undermines institutional credibility, accelerates demand for neutral reserve assets like gold and Bitcoin, and sends them full throttle into the global safe-haven spotlight.

📉Trump’s “Liberation Day” Tariffs Shake the World Economy

Last Wednesday, President Trump unveiled a new tariffs regime unlike anything we’ve seen in generations. Calling it “Liberation Day,” the plan imposes a minimum 10% tariff on all imports, plus:

• China: +34%

• EU: +20%

• All foreign-made cars: +25%

These tariffs officially took effect on April 9, with the stated goals of:

• Reviving U.S. manufacturing

• Reducing the trade deficit

• Paying down the national debt

But markets didn’t applaud. They panicked. Since the announcement:

• S&P 500 & Nasdaq are down nearly 11%

• On track for worst three-day stretch since Black Monday (1987)

• $10 trillion in global market value wiped out (Bloomberg)

🧨 The Dominoes Are Falling

In classic tit-for-tat fashion, China responded with:

• A matching 34% tariff on U.S. imports

• Export restrictions on 7 rare earth minerals critical to tech production

The EU followed with threats of countermeasures, calling the move a “major blow to the world economy.”

Trump’s reply? A 104% retaliatory tariff on Chinese goods if they don’t back down.

Cambodia and Vietnam? Hit with 49% and 46% tariffs, respectively.

🌍 This Isn’t Just a Trade War: It’s a Systemic Reset

Zoom out, and you’ll see this isn’t just about tariffs. It’s about the unraveling of the post-WWII global economic system. Here’s how it was designed to work:

• After WWII, the U.S. was the only industrial superpower left.

• Through initiatives like the Marshall Plan and Bretton Woods, the U.S. rebuilt the world by exporting dollars and importing goods.

• The world got access to U.S. consumers. The U.S. got global dominance.

• Countries ran trade surpluses and accumulated U.S. debt and dollars as reserves.

The result? Germany, Japan, South Korea, and China were industrialized. The U.S. deindustrialized.

💸 The Triffin Dilemma Comes Home

There’s a name for this paradox: the Triffin Dilemma.

If the U.S. dollar is the world’s reserve currency, the U.S. must run trade deficits to supply dollars globally. But persistent deficits erode the domestic economy.

• The U.S. became a consumer economy, not a producer.

• Middle-class manufacturing jobs disappeared.

• U.S. National debt ballooned to $36+ trillion (and accelerating fast)

• And now, the world is asking: Why should we keep holding U.S. debt?

📉 Stagflation Fears Loom

Tariffs = higher costs = higher prices = lower demand. Economists are warning of a dangerous mix: slow growth + high inflation = stagflation. Not a great backdrop for global recovery.

🟠 What This Means for Bitcoin

When fiat-based systems show cracks, alternatives start to shine. This breakdown in trust and coordination is exactly the kind of event that highlights the importance of monetary sovereignty, neutral and non-inflationary assets like Bitcoin. Bitcoin doesn’t rely on trade policy, central banks, or debt. It’s neutral, borderless, and finite.

In times like these, understanding matters more than ever.

🧘 Keep Calm & Stick to Your Plan

In uncertain times like these, emotional decisions often do more harm than good. The key is to stay focused on your short, medium, and long-term goals, and ensure your actions align with a rational, well-thought-out plan. Short-term momentum may be bearish, and we are clearly in uncharted waters. But over the long term, the outlook remains very bullish, especially for those building with conviction.

There’s also never been a clearer case for holding neutral reserve assets like Bitcoin. Under the Bretton Woods system, gold served as a neutral global reserve. But in today’s digital economy, gold relies on intermediaries and trust, making it prone to centralization and manipulation. Bitcoin is the modern alternative, decentralized, trustless, and built for the internet age.

Control what you can. Stay grounded. Stick to your plan. Better days will come.