U.S.–China Tariff Pressure Continues as Trump Targets Fed

The ongoing U.S.–China trade tensions remain at the forefront of market attention. While investors brace for further escalation, the spotlight has also shifted to a bold move by former President Donald Trump — suggesting the removal of the current Fed Chair.

Market Overview

Bitcoin remains steady near $84,500, unchanged from the previous day. Altcoins are mostly flat, with minor gains and losses scattered across major tokens. The global crypto market capitalization holds at $2.76 trillion.

Bitcoin ETF inflows indicate strong momentum throughout 2024, though outflows were seen from January to March 2025, coinciding with U.S. equity and Bitcoin corrections tied to trade tensions. Outflows have slowed recently, and net assets under management in Bitcoin ETFs have stabilized.

While U.S. stock markets remain volatile due to tariff news, Bitcoin's price reaction has been less dramatic. This muted response reflects a maturing narrative — frequent geopolitical headlines, economic triggers, and monetary policy shifts now generate less price shock in crypto than before.

The recent rounds of tariff announcements by Trump and China’s retaliatory measures haven’t yet manifested visible damage in pricing or corporate activities, largely due to existing inventory buffers. However, the market still awaits a formal trade deal that could settle volatility.

If tensions intensify, central banks may step in. China's central bank has already begun intervening. If necessary, the U.S. Federal Reserve could follow with monetary easing, depending on inflation data and bond market stability.

Tariff Developments: Quiet Talks and Public Signals

President Trump recently met with Italian Prime Minister Giorgia Meloni and affirmed intentions for a "fair" trade agreement. However, Meloni represents only Italy, not the broader EU bloc. Separately, Trump hinted that a potential trade deal with China could materialize within three to four weeks.

White House economic advisor Kevin Hassett confirmed that over 15 trade agreements are under active review. However, he declined to specify the progress with China or whether Trump and Xi Jinping had personally engaged. For now, discussions remain at the negotiation team level.

Given the intertwined nature of global trade, any U.S.–China fallout would ripple across other economies. A resolution is not a matter of "if," but "when." Prolonged conflict will only exacerbate economic damage for both nations.

Trump’s Pressure on the Fed

Trump once again voiced dissatisfaction with Fed Chair Jerome Powell, stating, "If we had a Fed Chair who knew what he was doing, rates would have been cut already."

White House officials, including Hassett, hinted they are reviewing the legal avenues to remove the current Fed Chair. Powell has stated clearly that he cannot be fired by the President and intends to serve out his term through May 2026.

The legality of firing a Fed Chair remains murky. The Federal Reserve Act permits removal of Board Governors — including the Chair — only "for cause," generally interpreted as misconduct or incapacity, not policy disagreements. Such a move would likely face a legal battle in court.

While many in the market support rate cuts to aid economic growth, central bank independence is vital to maintaining macroeconomic stability and market trust. A politically influenced Fed would raise concerns over the reliability of U.S. monetary policy.

Other Global Updates and Policy Signals

Kraken is set to list BNB on April 22 — notable as few U.S. exchanges currently support BNB. Retail giant SPAR is trialing Bitcoin Lightning payments in Switzerland. Oregon’s Attorney General plans to sue Coinbase, reviving allegations around staking and unregistered securities.

Slovenia will implement a 25% tax on crypto gains from 2026, though crypto-to-crypto transactions remain exempt. Meanwhile, Russia considers launching a domestically controlled stablecoin to bypass USDT reliance.

In the U.S., Trump Media urged the SEC to investigate suspected illegal short-selling of DJT stock after Trump posted cryptic encouragements to buy. This comes amid rising political tension over market manipulation claims.

VanEck prepares to launch a new crypto-themed ETF under the ticker NODE, aiming to give investors broader exposure to the digital asset economy. Ethereum gas fees have dropped to $0.17, with the Pectra upgrade set for May 7 to reduce congestion and support stablecoin-based gas payments.

Panama’s capital city now accepts crypto — including BTC, ETH, USDC, and USDT — for taxes and transit. Payments are auto-converted to USD via banking partners. Galaxy Investment’s Mike Novogratz cautioned that investor sentiment remains risk-averse, though macro trends and rising BTC adoption suggest long-term bullish prospects.

As President Trump escalates his rhetoric against the Fed and intensifies trade maneuvers with China, financial markets remain in flux. While Bitcoin has shown relative resilience, investor caution still prevails. The coming weeks will be pivotal — not only for potential tariff agreements but also for the evolving stance of the Federal Reserve. For crypto, the convergence of political, economic, and regulatory shifts continues to shape its journey toward mainstream integration.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.

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