Introduction
In an age of rising trade tensions, inflation, and shifting global power dynamics, two very different asset classes are vying for investor attention: traditional bullion (gold & silver) and the newer frontier of crypto-assets (Bitcoin, Ethereum and beyond). At the same time, the sweeping tariff policies of Donald Trump are reshaping global trade, supply chains and economic growth. At Financial Corridor, we believe that understanding how these macro events tilt the playing field can help you better position your portfolio.
The Tariff Shock & Its Ripple Effects
Under Trump’s renewed tariff push, the average U.S. import tariff level has soared in 2025, and global trade disruptions are real.  Key consequences:
- Growth drag: The tariffs are estimated to reduce U.S. growth by up to ~0.2-0.6 percentage points in the near term.
- Inflation risk: Tariff-induced cost increases for goods are feeding into higher consumer prices.
- Supply-chain shifts: Firms are relocating manufacturing or sourcing outside the U.S./China axis to avoid tariffs—this raises uncertainty.
In short: higher risk, higher uncertainty, and heavier tilt toward assets that benefit from inflation hedging or safe-haven status.
Bullion: Why It Stands to Gain
Bullion—especially gold and silver—has long been the go-to “hedge when things go sideways.” Here’s why the tariff environment may boost bullion:
- Tariff-driven inflation means real yields fall: When real interest rates drop, gold becomes more attractive (since it doesn’t yield interest).
- Currency weakness: If the U.S. dollar weakens through policy or external shock (as tariffs push economic weakness), precious metals tend to rise.
- Safe-haven demand: Trade wars introduce geopolitical & economic risk, which often drives capital into gold/silver as a “quiet place.”
Thus, for investors looking at 2026, bullion may offer a more conservative hedge.
Crypto: The Wild Card with Upside
Crypto assets sit on the opposite end of the spectrum—high volatility, high potential reward, and also high structural risk. In the tariff framework:
- If tariffs slow growth and shake confidence in fiat currencies / the global monetary order, crypto could gain as an alternative monetary system.
- But if growth collapses or regulation tightens (a frequent risk in uncertain trade regimes), crypto may suffer steep drawdowns.
- The tariff war may accelerate technical innovation and capital flows into decentralized finance (DeFi) as investors seek diversification outside traditional channels.
So crypto offers upside—but also much higher risk.
