It’s been a real rollercoaster on the stock market, right? Up one day, down the next. And while many point fingers at interest rates or company earnings, I believe there's a less obvious culprit fueling the volatility: tariffs. We hear that they’re really about protecting jobs, about Making America (or your country of choice) great again. But are they really? Or are we just getting sold a bill of goods that leaves all of us worse off in the end?
Are Tariffs Really Helping Anyone?
Let’s not kid ourselves, the siren song of tariffs is an alluring call. Make America Great Again by saving our manufacturers, protecting jobs and making those lousy foreign cheaters pay! However, have you ever taken a moment to consider what we’re doing when we add a tariff on goods coming into the country? It’s not only a faceless corporation that pays the price. It's you. It's me. It's everyone.
Just imagine the poor small business owner in Accra, whose company’s expanded line of imported textiles has just been slapped with a huge tariff. A ballooning tariff increase unexpectedly raises their cost and squeezes their already thin profit margins. Otherwise, they’ll be forced to increase costs or terminate employees. Is that truly what we want our “protection” to be? It's not just about abstract economic theory; it's about real people, real livelihoods.
The news talks about Bitcoin's volatility, and how it mirrors the stock market's ups and downs. As they further point out, it’s perfectly normal for the correlated to be correlated with the S&P 500 and Nasdaq. What's driving that correlation? It's not just magic. It's fear and uncertainty. Tariffs create that uncertainty. They aggravate supply chain issues, impede trade, and create an even more unpredictable business environment. And when businesses are uncertain, investors get jittery, and markets – crypto included – take notice.
| Market Indicator | Recent Performance |
|---|---|
| Bitcoin | Rollercoaster, mirroring market uncertainty |
| S&P 500 | Fluctuating in response to tariff news |
| Small Business Confidence | Declining due to import cost increases |
Bitcoin A Safe Haven? Think Again.
Of course, we know that many Bitcoin advocates are claiming it a safe haven, an inflation free umbrella, and escape route from the government’s manipulation. Advocates argue that its borderless nature protects it from the current whims of politicians and their tariff wars. And while that’s true, don’t be drawn in to the idea that it’s a silver bullet panacea.
Yes, Bitcoin can protect you from your currency going to zero and hyperinflation. However, it is not immune to these bigger economic shocks. When global trade grinds to a halt, when businesses are struggling, and when consumers are tightening their belts, even Bitcoin feels the pain. Don’t forget that Bitcoin was above $100,000 in January. Look at it now. See the volatility? That’s not merely the noise of an unpredictable electoral process; it’s a direct response to deep social and economic fears. These anxieties are partially stoked by tariffs themselves.
We love that the crypto market is so innovative, but it’s still incredibly speculative. At the same time, it’s affected by all the same forces that push and pull on regular markets. With no definitive regulation framework provided in the US, the absence of clarity only compounds the risks, making it doubly dangerous.
A Call For Freedom And Balance
Now, I’m not advocating open borders and everyone come pouring in. Nobody is suggesting that there isn’t a legitimate need to protect some industries and level the playing field. Tariffs are a blunt instrument. They’re as effective as anyone fixing a broken watch with a sledgehammer.
We need to think more creatively. Now more than ever we need creative transportation solutions that advance free trade while delivering public health, safety and prosperity for our citizens. We need policies that foster innovation, education, and job training, so that our workforce can compete in the global economy.
First, educate yourself. Don't just swallow the talking points. Do your own research. Understand the real-world consequences of tariffs. Second, talk to your elected officials. Tell them you care about the harmful effects these policies would have on your community and your livelihood. Third, champion companies that prioritize responsible sourcing.
The stock market rollercoaster is just a symptom of a much deeper problem. In short, we have to get past the red herring of tariffs. Otherwise, we’ll continue to be played like a fiddle, stringing our portfolios along and putting our economic future at stake. It's time to demand a better way.
