Bitcoin News Today: U.S. Officials Turn to Bitcoin as Hedge in Trump's Tariff Gambit

The U.S. Commerce Secretary, Howard Lutnick, has made strategic investments in Bitcoin funds amid ongoing trade tensions under the Trump administration, as the administration's imposition of tariffs continues to influence global markets. This move reflects a broader shift in how U.S. officials are approaching economic strategies in response to trade policies that have raised concerns over inflation and global supply chain stability. Lutnick’s purchases are seen as an indication that U.S. policymakers are diversifying their portfolios into digital assets as a hedge against macroeconomic uncertainties arising from the administration’s aggressive trade agenda [3].

Simultaneously, the Trump administration has imposed a series of tariffs on a wide range of imports, including steel, aluminum, and other goods, with some reaching as high as 50%. While these measures were initially expected to trigger significant inflation, the actual average tariff rate on U.S. imports in June stood at 9%, below earlier estimates of 15%. This discrepancy is partly attributed to the fact that many goods—especially those from Canada, Mexico, and certain electronics—remain exempt from new tariffs. Additionally, some countries affected by higher tariffs have reduced their exports to the U.S., while others have increased shipments of goods with lower tariff rates [1].

Economists suggest that the delayed impact of tariffs is also contributing to the subdued inflationary pressures. Retailers have been absorbing the initial cost of tariffs by holding off on passing the increased expenses to consumers, while also managing to delay price hikes by drawing on pre-tariff inventory. However, this strategy is seen as only temporary. Analysts warn that as inventory levels decline and clarity emerges on the final tariff rates, more retailers are likely to increase prices. This gradual inflationary effect is expected to become more pronounced in the second half of the year and into 2026 [1].

In response to the tariff policies, U.S. trade partners have also adjusted their economic strategies. India and China, for instance, have taken steps to strengthen bilateral ties in the wake of Trump’s aggressive trade policies. The two nations agreed to resume direct flights, enhance data sharing on river resources, and relax visa restrictions for tourists and business travelers. These moves come as India seeks to counter the economic fallout from Trump’s tariffs, which include a 50% levy on Indian goods, and as China avoids similar measures by maintaining its position as the world’s largest buyer of Russian oil [4]. The Trump administration has defended its policy toward India, arguing that it punishes the country for its continued purchase of Russian oil, while exempting China from similar tariffs due to its diversified oil sources [5].

Treasury Secretary Scott Bessent has stated that the current tariff arrangement with China is “working pretty well,” signaling a potential continuation of the current status quo before a trade truce expires in November. The administration has extended a 90-day pause on higher tariffs on Chinese goods, stabilizing trade relations between the world’s two largest economies. This pause coincides with broader negotiations aimed at reducing tit-for-tat tariff hikes and easing export restrictions on rare earth materials and certain technologies. However, concerns persist regarding the impact of these tariffs on key U.S. industries, with American soybean farmers warning of the financial strain caused by ongoing trade disputes [5].

Source:

[1] 4 reasons why the Trump tariffs haven't caused U.S. ... (https://www.cbsnews.com/news/us-tariffs-trump-inflation-prices/)

[2] Trump just put an extra tariff on hundreds of common items ... (https://www.cnn.com/2025/08/19/economy/trump-steel-aluminum-tariffs)

[3] BTCUSD - US Commerce official buys Bitcoin as Trump tariffs ... (https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96682513/us-commerce-official-buys-bitcoin-as-trump-tariffs)

[4] Did Trump's tariff war force India and China to mend ties? (https://www.aljazeera.com/news/2025/8/20/did-trumps-tariff-war-force-india-and-china-to-mend-ties)

[5] Bessent Says China Tariff Status Quo 'Working Pretty Well' (https://www.bloomberg.com/news/articles/2025-08-20/bessent-says-tariff-status-quo-with-china-working-pretty-well)