Bear in the markets: The US trade war affects South Korea and puts pressure on currencies

A real bear scenario is taking shape in the markets, as a new wave of trade tensions between Washington and Seoul begins. What was promoted as a $350 billion trade deal now appears to have significantly diminished, especially after Washington imposed heavy tariffs of 25% on cars, timber, pharmaceuticals, and various goods.

The Rise of the Bear Wave: Tariffs and Immediate Effects

This move directly impacts South Korea’s economy, which heavily relies on exports. Rising costs and pressure on global supply chains are becoming tangible realities, particularly in an economic environment already under multiple strains. Trump’s strategy is clear: use tariffs as a bargaining tool, but the results could be counterproductive.

The expected effects of this trade conflict include a slowdown in global trade, additional pressure on economic growth, and continued uncertainty in financial markets. This scenario reflects a strong return of trade war tensions after a period of relative calm.

A Bear Touches Cryptocurrency Prices

Amid these macro developments, cryptocurrency prices have experienced notable fluctuations:

• BTR (Bitlayer): Down 39.62%, reaching $0.08, reflecting strongly bearish market sentiment
• HYPE (Hyperliquid): Up 4.34% to $35.15, one of the few exceptions in a pressured market environment
• AXL: Continued slight decline

These figures confirm that the current bear wave is not limited to traditional markets but has also extended its impact to the digital asset sector. The uncertainty surrounding the course of the trade war and its potential effects on the global economy remains the main factor driving a strong bear market in the markets.