Tariffs Are a Global Reset: In the End, the USA Will Have to Lower the USD to Compete—Buy Gold, Buy BTC, Buy the Dip
By Shayne Heffernan
April 4, 2025
Donald Trump’s tariffs, announced on April 2, 2025, have flipped global trade upside down, and I’ve been keeping a close eye on the fallout. These tariffs—10% on imports from everywhere, with bigger hits like 34% on China, 20% on the EU, and 46% on Vietnam—are a total game-changer. They’re a global reset, something we’ve needed for a while, even if it’s messy right now. But here’s the real twist: the USA will have to lower the USD to stay in the game. That’s where the opportunity lies. Let me walk you through why this reset is happening, what it means, and why you should buy gold, Bitcoin (BTC), and the dips in key assets.
The Tariffs: A Global Trade Reset
Trump’s tariffs are straightforward but brutal. If a country charges the U.S. a tariff, the U.S. matches it. It’s a way to fix trade imbalances that have hurt American workers for years. The EU’s hidden tariffs through value-added taxes (VATs) and China’s maze of trade barriers have made it tough for U.S. goods to compete. Trump’s tariffs are forcing everyone to play fair—if you want to sell here, you’d better let our stuff into your market on the same terms. It’s already working. India’s cutting tariffs on U.S. motorcycles, and the EU’s talking about lowering car tariffs, as Bernd Lange told the Financial Times.
The world’s not happy about it. China’s calling it “self-defeating bullying,” and the EU’s Ursula von der Leyen warned of “dire consequences.” Markets are a mess—the S&P 500 dropped over 4% on April 3, with Asia and Europe seeing similar slides, according to The New York Times. But this chaos is the whole point. Trump’s rewriting the rules of global trade. The U.S. has been the backbone of a cooperative trade system since World War II, making the dollar the world’s top currency. These tariffs could replace that with a system where the biggest player calls the shots. It’s a risky move, but it’s tackling a problem that’s been ignored for too long.
Why the USA Will Have to Lower the USD
Here’s the part most people aren’t talking about: these tariffs will force the U.S. to lower the USD to stay competitive. Right now, the tariffs are making U.S. exports pricier abroad—Canada’s exports to the U.S. are hurting, but so are U.S. exports to Canada, as the Bank of Canada pointed out. Tariffs also drive up inflation by raising the cost of imported goods. High Frequency Economics estimated a $741 billion hit to U.S. households or companies, and the Tax Foundation says the 25% tariffs on Canada and Mexico alone could cut long-run GDP by 0.2%.
This inflation is already pushing the Federal Reserve toward rate cuts—markets are betting on a cut in June, per Reuters, because tariffs could slow U.S. growth. But a stronger dollar, which we’ve seen since the tariffs started (Reuters noted a gain on February 1), makes U.S. exports even more expensive. That’s because tariffs reduce demand for foreign currencies in trade, boosting the USD’s value, as the BBC explained. A strong dollar is great for importers but kills exporters. In the long run, the U.S. will have to lower the USD to make its goods cheaper abroad and keep its edge. Trump might not like it—he’s always loved a strong dollar—but the numbers don’t lie.
Buy Gold, Buy BTC, Buy the Dip
The market’s reaction has opened up some real chances to buy. Stocks are down, crypto’s all over the place, and safe-haven assets are looking good. Here’s what I’m seeing:
- Gold: Gold hit a record high of $3,167.50 on April 3, as investors ran to safe-haven assets amid trade tensions, according to The Guardian. Tariffs are stoking inflation fears—the Fed’s already raised its inflation forecasts, per NBC News—and gold always does well when inflation climbs. Buy gold now and hold it as a hedge against the uncertainty.
- Bitcoin (BTC): Bitcoin’s been up and down, dropping to a three-week low on February 3 after the tariff news, as Reuters reported, but it also topped $101,000 after the U.S. delayed tariffs on Mexico, per CNBC. James Butterfill from CoinShares has a good take: tariffs hurt Bitcoin short-term because it’s tied to economic trends, but long-term, it can act as a hedge like gold, especially if stagflation hits. Bitcoin’s correlation with the NASDAQ is down to 40% from a peak of 72%, showing it can stand on its own in a crisis. Buy BTC on the dips—it’s a hedge for what’s coming.
- Buy the Dip: The market sell-off has hit stocks hard. The S&P 500, Nasdaq, and global indexes like the Nikkei and Stoxx Europe 600 are down, as the BBC noted. But this is your chance to buy the dip. Tech stocks like Tesla and Nvidia are oversold—Tesla’s been sliding since December, and Nvidia’s been a rollercoaster, as Motley Fool reported. Trump’s support for Tesla is clear (he showcased their cars at the White House in March), and Nvidia’s AI chip dominance isn’t going anywhere. Alibaba’s another one to watch—if China negotiates, it could bounce back. Metals like steel and aluminum are also worth buying—Kevin Dempsey from the American Iron and Steel Institute said the tariffs are boosting U.S. production. Don’t fall for the panic; the tariffs will change, the markets will rally, and Knightsbridge says buy the dip.
KXCO and Knightsbridge: Building for the High-Velocity Economy
This is where KXCO and Knightsbridge come in—they’re building the platforms for the high-velocity economy these tariffs will hasten. KXCO’s decentralized exchange (DEX) and digital wallets let you trade tokenized assets like gold or stocks instantly, cutting out middlemen and speeding things up. In a world where tariffs are forcing faster trade adjustments, their platforms make it easier to move money and assets across borders, keeping you ahead of the curve.
The Long Game
Trump’s tariffs are a global trade reset, no question. They’re messy, they’re risky, and they’re making markets jittery. But they’re also forcing a level playing field that’s been needed for years. The U.S. will have to lower the USD to compete in this new world, and that’s going to shake things up even more. Inflation will climb, safe-haven assets like gold and Bitcoin will do well, and the market dips we’re seeing now are a chance to get in before the rally. Knightsbridge is clear: buy gold, buy BTC, and buy the dip in metals, Tesla, Nvidia, and Alibaba. Hold through the storm, and you’ll come out ahead. That’s how you play this new trade game—stay sharp, stay patient, and grab the opportunities when they show up.
