Bearish scenario on the horizon: Trump imposes 25% tariffs on South Korea

Global markets enter an unknown territory after the Trump administration announced a 25% tariff on South Korean imports. This move signals the beginning of a new era of trade tensions, where the scenario of an economic bear market seems closer to reality than ever before. What was expected to be a historic $350 billion agreement between the two countries has turned into mere promises on paper.

$350 Billion Deal Collapses Under Trade Bear Pressure

The economic agreement celebrated in recent months has quickly lost its shine. The U.S. side has drastically changed its tone and begun using pressure as a direct negotiation tool. Indicators suggest that these are not just fleeting threats but a real shift in strategy when dealing with trade partners.

The new tariffs will include cars, wood, pharmaceuticals, and several other traded goods, dealing a heavy blow to an economy heavily reliant on exports. This development is not isolated but reflects a broader pattern of reshaping global trade relations.

New Tariffs: A Heavy Blow to Global Supply Chains

A 25% increase in tariffs will lead to a series of serious economic repercussions. First, costs will rise significantly across supply chains already under substantial pressure. Second, this will impact the speed of global trade, with a clear slowdown in transaction volumes expected.

Global markets do not take surprises easily, especially when there is uncertainty about the direction of U.S. trade policy. Investors are seeking clear signals, and the current indication points to instability and potential inflationary pressures. This scenario increases the likelihood of the market entering a bear economy zone.

Market Response: Cloudy Economic Outlook and Investment Opportunities

The overall picture shows that current trade tensions could lead to a slowdown in overall economic growth in both emerging and developed markets. Trump’s strategy is clear: using pressure as a negotiation tool to achieve better deals. But the real question remains: will this policy achieve its intended goals, or will it exacerbate existing economic problems?

As these developments unfold, specific investment opportunities emerge. Cryptocurrencies with strong fundamentals are recording notable gains, reflecting ongoing searches for safe assets:

BTR (Bitlayer) rises by 8.10%, reaching $0.15, reflecting investor confidence in second-layer blockchain solutions.

HYPE (Hyperliquid) maintains its gains with a 4.81% increase at $31.11, indicating the strength of high-liquidity projects even during turbulent times.

AXL continues its upward trend, gaining 4.78% at $0.0613.

The bear narrative is not over yet, and the impacts of new trade policies could reach global markets faster than expected. Investors and analysts are closely monitoring upcoming developments, as each new trade action could lead to significant shifts in market dynamics.