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Home News BiyaPay Analyst: U.S. Reinitiates 232 Investigation, Tariffs May Escalate Inflation Pressure, Increasing Downside Risk for Bitcoin

BiyaPay Analyst: U.S. Reinitiates 232 Investigation, Tariffs May Escalate Inflation Pressure, Increasing Downside Risk for Bitcoin

BlockBeats News, September 25th, the U.S. Department of Commerce announced an investigation under Section 232 of the Trade Expansion Act into the importation of robots, industrial machinery, and medical devices. This section empowers the President to impose tariffs on imports that threaten national security, and the investigation results will be submitted within 270 days. Analysts believe that this move may significantly expand the potential tariff scope and increase import costs.

BiyaPay analysts pointed out that if the new investigation results in tariffs being implemented, it may raise the costs in the U.S. manufacturing and medical sectors, exacerbating inflationary pressures. With the Federal Reserve still needing to balance employment and prices, rising inflation will force monetary policy to maintain a tighter stance for longer, potentially strengthening the U.S. dollar further. A strong dollar often suppresses the performance of risk assets, especially Bitcoin.

Historical experience shows that during periods of rising interest rate expectations or high inflation, Bitcoin struggles to sustain its role as a safe-haven asset and may be under pressure due to liquidity tightening. Currently, BTC is oscillating at highs, and if tariffs resonate with inflation, it could trigger a new round of downside risks.

In this context, BiyaPay offers 0 fee spot and contract trading and supports users to invest in U.S. and Hong Kong stocks using USDT, helping investors flexibly adjust their positions in volatile market conditions to seize risks and opportunities.

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