$BTC Dropped right after 🇺🇸 Donald Trump announced new tariffs?
Most traders shrugged it off as just another headline shock.
But the real story runs much deeper — and it explains why markets move so fast when trade tensions flare.
Here’s what many miss: those tariffs weren’t truly paid by “other countries.”
Research from the Kiel Institute for the World Economy shows that about 96% of U.S. trade tariffs are paid by Americans themselves — both consumers and businesses. Only 4% falls on foreign exporters.
Tariffs act less like a weapon against rivals and more like a hidden domestic tax.
Imported goods get more expensive.
Companies pass the cost down the supply chain.
Households feel it in higher prices.
Foreign producers rarely slash prices — they just cut shipments, reroute markets, or adjust strategies.
The result? Nearly $200B in tariff revenue was effectively funded by the U.S. economy — not the external players the policy aimed to pressure.
That’s why markets reacted so sharply.
Tariffs tighten financial conditions.
They squeeze margins.
They slow growth expectations.
They raise inflation risk.
And all of this hits risk assets first.
Liquidity moves before headlines.
Bitcoin feels that stress immediately.
BTC didn’t drop because of politics.
It dropped because the market knew who was paying the bill. Buy Here 👇
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