Bank of America on May 30 announced concerns over U.S. tariffs adversely affecting its economy more than countries it trades with.
Bank of America sees potential retaliatory trade barriers impacting U.S. significantly; economic performance tied to policy noise presents uncertainty.
Retaliatory Risks from U.S. Tariff Policies
Bank of America has raised alarms about the U.S. tariff policies, pointing out that these tariffs could cause greater harm to the U.S. economy than to other countries’ economies, given the U.S.’s status as a major global trade player. Trade retaliation from other nations is considered likely as a reaction to U.S. tariffs, posing additional risks to the already strained U.S. economy.
Economic indicators will play a crucial role in determining the future of the U.S. dollar. According to Bank of America’s analysis, weak economic data due to ongoing policy uncertainty, halted corporate investment, and extensive tariffs may lead to a decline in dollar value support. Bank of America’s Year-Ahead Economic Outlook for 2025 highlights these concerns.
“Given that economic uncertainty remains very high amid the imposition of tariffs and corresponding price increases, we continue to keep a close watch on consumer spending and broader economic trends.” — Bank of America Global Research, Economic Analysts, Bank of America
Reactions have varied across markets, with ongoing high tariffs prompting debates within the financial community and policymakers. Investors remain cautious as they await critical economic data that could shift the dollar’s outlook. As Bank of America highlighted, no comments from C-level executives have been observed.
Tariffs’ Impact on Economic Indicators and Cryptocurrency Trends
Did you know? The 2018–2019 Sino-U.S. tariff dispute led to heightened global market volatility, reflecting the potential unstable conditions outlined by Bank of America’s current observations.
The CSIS analysis on Trump’s tariffs suggests that further tariffs could exacerbate existing economic issues, potentially increasing demand for alternative assets like cryptocurrencies. Historical trends show that during periods of dollar weakness, cryptocurrencies have garnered increased attention from global investors, although current impacts remain speculative.
According to CoinMarketCap, Bitcoin (BTC) currently trades at $104,676.17, with a market cap of approximately $2.08 trillion. The dominant cryptocurrency has registered a 1.32% drop in the last 24 hours and a 3.35% decrease over the past week. Its trading volume over 24 hours reached $57.31 billion, reflecting a 4.52% shift. As of May 30, 2025, BTC’s circulating supply is 19,872,206, with a fully diluted market cap of $2.20 trillion.
