Trade Wars Spark Blockchain Opportunities, Risks

Escalating trade wars are causing significant disruptions in cryptocurrency markets, but they are also creating new opportunities for blockchain networks. Executives from Truebit, a blockchain network specializing in trustless verification, highlighted that if high tariffs are implemented, blockchain technology can play a crucial role in ensuring governments apply them fairly.

On April 2, President Donald Trump announced plans to impose sweeping tariffs on US imports, prompting other nations to threaten retaliatory measures. Although Trump later paused the tariff rollout for certain countries, the possibility of a global trade war remains, especially after Trump reiterated his commitment to taxing Chinese goods.

According to Truebit’s chief technology officer, Federico Kattan, blockchain technology can help prove the provenance of goods and establish the chain of custody. This is particularly important in scenarios where companies might try to circumvent high tariffs by assembling or packaging products in low-tariff countries and then importing them into the US at a lower rate. Blockchain networks can enhance supply chain transparency by recording every transaction on an immutable public ledger, greatly limiting the scope for fraud across trillions of dollars worth of imported goods.

Truebit is already in discussions with software vendors servicing the US government and has been working on a European Union-funded project exploring Web3’s potential role in global supply chains. The company’s CEO, Jason Teutsch, noted that while they are not yet in direct talks with governments, they are focusing on interfacing with software vendors that work with government entities.

However, several other crypto executives have cautioned that tariffs pose serious risks to blockchain networks’ integrity and accessibility to users. Worsening trade wars could disrupt networks’ physical infrastructure, fragment regulatory regimes, and censor users. Nicholas Roberts-Huntley, CEO of Concrete & Glow Finance, warned that aggressive tariffs and retaliatory trade policies could create obstacles for node operators, validators, and other core participants in blockchain networks.