U.S. Tariffs Spark German Inflation Fears

German Bank Economists Warn of Inflation and Economic Drag from U.S. Tariffs

Economists from a leading German bank have expressed concerns that U.S. President Trump's tariff measures could push up inflation and pose a risk to economic growth. In a recent report, economists Bernd Weidensteiner and Christoph Balz stated that consumer confidence has been under pressure, and the latest tariff measures are unlikely to bring much relief.

The economists pointed to indicators such as the price component of the Purchasing Managers' Index, which shows a strong rise in commodity prices. They noted that Mexico and Canada accounted for 28% of U.S. goods imports, and China accounted for 13.4%, meaning that 41.5% of U.S. imports are significantly affected by the tariff increase. This, they added, will have an impact on prices.

The economists' warnings come as the U.S. stock market has lost $1.5 trillion, and the cryptocurrency market has lost $300 billion. Trump held a lavish press conference to address the market losses and the ongoing trade tensions.

Meanwhile, former Coinbase CEO Brian Armstrong has criticized the U.S. government's approach to cryptocurrency regulation, stating that it is "unfair and inconsistent." Armstrong's comments come as the U.S. government continues to grapple with how to regulate the rapidly evolving cryptocurrency market.

In other news, Arthur Hayes, the former CEO of BitMEX, has predicted that Bitcoin could drop to $70,000 but still remain in a bull market cycle. Hayes' comments come as the cryptocurrency market continues to face volatility and uncertainty.