Trump’s Approach to Tariffs: Balancing National Security and Bitcoin’s Unpredictable Prospects

The Bureau of Industry and Security (BIS) within the U.S. Department of Commerce has launched two fresh Section 232 probes to evaluate how imports of personal protective equipment (PPE), medical devices, as well as robotics and industrial machinery, may affect national security. Announced on September 26, 2025, these reviews are part of the Trump administration’s broader agenda to identify supply chain weaknesses and reduce risks associated with foreign control in essential industries. The investigations invite public feedback for 21 days, after which the Commerce Secretary must deliver a final report to the President within 270 days. Depending on the findings, the administration could introduce tariffs or other trade restrictions to support domestic manufacturing and lessen dependence on overseas suppliers U.S. BIS Seeks Comments on Section 232 Investigations of Imports [ 1 ].

Section 232, established under the Trade Expansion Act of 1962, gives the President authority to regulate imports that may endanger national security. Past use of this power has resulted in tariffs on products like steel, aluminum, and semiconductors. The current investigations expand this scope to include pharmaceuticals and vital minerals. The Trump administration has adopted a dual strategy: using “baseline” tariffs to negotiate reciprocal trade deals and deploying targeted Section 232 tariffs for key industries. This approach underscores a focus on economic strength over diplomatic concessions, with the possibility of tariffs being applied to a broader array of products Section 232 Investigations - Bureau of Industry and Security [ 2 ].

The prospect of new tariffs has sparked worries about rising inflation. According to Yale Budget Lab analysts, the proposed tariffs could cost American households up to $1,000 each year, while China’s potential countermeasures—such as a 34% tariff on U.S. agricultural and energy goods—could further disrupt global commerce. Such inflationary effects may squeeze consumer spending, dampen demand for riskier assets, and complicate the Federal Reserve’s policy decisions. These trends are already visible in cryptocurrency markets, where

(BTC) and (ETH) have shown increased price swings following tariff-related news Trump Administration Initiates Section 232 Investigations on Pharmaceuticals and Semiconductors [ 3 ].

Historically, Bitcoin’s value has moved in tandem with broader economic uncertainty. After the tariff announcements in April 2025,

dropped by 5.4% to $74,500, reflecting a wider market downturn. Although a 90-day suspension of the tariffs allowed prices to rebound to $84,704.44 by April 18, analysts such as Charles Edwards from Capriole Investments warn that ongoing instability could push BTC below $71,000. While Bitcoin is often called “digital gold,” its effectiveness as a hedge is still debated, but its sensitivity to shifts in investor sentiment is clear. In the event of a recession, Bitcoin could come under pressure as investors seek safer, more liquid assets U.S. Tariff Policy Impact on Crypto Markets [ 4 ].

The relationship between tariffs and Bitcoin’s price goes beyond direct trade effects. For example, tariffs on imported equipment for semiconductor manufacturing could raise costs for U.S.-based Bitcoin miners, indirectly impacting the cryptocurrency’s supply. However, Bitcoin’s decentralized structure shields it from direct taxation, and a decline in U.S. mining could shift activity to lower-cost regions abroad. Over time, inflation driven by tariffs may enhance Bitcoin’s reputation as a store of value, especially if traditional currencies lose purchasing power. Goldman Sachs experts suggest that a 20% increase in tariffs on Chinese goods could speed up investment into decentralized assets like Bitcoin How Might New Tariffs Affect Bitcoin? - The Motley Fool [ 5 ].

Analysts at BiyaPay point out that tariffs have a double-edged effect on Bitcoin. While immediate inflation and economic uncertainty can weigh on prices, declining confidence in conventional financial systems could strengthen Bitcoin’s appeal as a long-term safeguard. If the Federal Reserve responds to a tariff-induced downturn with quantitative easing, Bitcoin could benefit from increased liquidity. Nevertheless, the timing of these effects is unpredictable, and short-term volatility is likely as markets adjust to new policies.