The United States is a global superpower, but for the first time in a long time, we can begin to consider signs of slipping. The United States is more than just a military. It is one of the world’s largest consumer markets, with imports reaching over $3 trillion per year.
Countries hit by tariffs announced on April 2, 2025 are currently rushing to find alternatives and reduce their dependence on the US consumer market.
For example, China, which exported up to $560 billion to the US in 2024, exported Canada with $576 billion, and $421 billion.
In some ways, bailouts can be found through cryptography and stubcoin as strategic tools to mitigate risks from Trump’s tariffs. Issuing Stablecoins fixed on local currency or assets can help reduce reliance on the US dollar, streamline trade, and protect the economy from tariff-driven disruptions.
Irony is not lost in the average observer. Before Trump became president again, Crypto was frowned upon and unencouraged in many of these countries. Each of their governments did everything they could to fill the sector with suffocating regulations, tax rates and forced responses to slip-ups.
Trump’s tariffs could mean it’s time for stablecoin issued locally
Some countries currently supporting the release of Stablecoins tied to local currencies include Dubai, whose AE coin was approved in principle in October 2024 and fully regulatory approval by December, with the UAE’s first regulated Stablecoin pegging 1:1 on the UAE diam.
Korean exchanges have already provided tips on how the crypto market operates locally, with most of which offering mainly KRW pairs.
There are also plans to launch a “Hangan” CBDC pilot programme by the Bank of Korea. This continues from April to June 2025, with 100,000 participants reportedly involved. If it is ultimately successful, the CBDC can give South Korea the digital currency acquired by South Korea.
The pilots include seven major banks: KB Kookmin, Shinhan, Woori, Hana, Korea Industrial Bank, Nonghyup and Busan. Participants can convert bank deposits into tokenized deposits for local payments.
It is clear that with this development in various countries, we will see more Stablecoin segments, which have already seen significant capitalization. However, non-dollar stubcoins still have limited trading volumes.
While USDT routinely sees daily trading volumes of over $60 billion, USDC is nearly $10 billion. Meanwhile, Euro Stablecoins (EURT, AGEUR, etc.) rarely trades daily to more than $50 million.
It is important to note that a surge in national stability coins can lead to fragmentation of the global stubcoin market. This means that, rather than a few players like circles and tethers dominate the scene for dollar products, the world can witness the birth of a patchwork of local stub coins.
In that scenario, citizens from non-US countries could potentially exchange local stubcoins and crypto pairs in place of the current standard, USD pair.
That level of fragmentation negatively affects the dollar-backed stubcoin dollars and universal appeal and domination.
Remember that dollar-backed stubcoins are a big deal for now due to the US dollar’s status as a global reserve currency. If a country begins to encourage the use of local fiat or stubcoin for international trade or cross-border payments, it can reduce global reliance on the dollar.
If this lasts long enough, it could erode the dominance of the dollar and affect the popularity and stability of indirectly dollar-covered stubcoins.
It’s unlikely that a country will be stylized, but it certainly could be set up something that publishers would easily set up to create local, silly idiots for each country.
The yen and original absurd at this point are barely present in the main exchange and debt protocols. The same applies to stubcoins in emerging market currencies such as rubles, Leis and Rupee. All of these are virtually non-existent in the crypto market, limiting the possibility of building robust currency strategies, including forex and carry trading.
Tariff responses can affect Americans more than expected
Since tariffs came into being, various business entities and countries have threatened retaliation, but others have been pushing it forward.
Automaker Stellantis has temporarily fired US workers and has pledged to shut down plants in Canada and Mexico, but General Motors says it will increase US production.
Canadian Prime Minister Mark Carney says the United States has abandoned its historic role as a champion of international economic cooperation.
“The global economy is fundamentally different from yesterday,” he said, announcing some measures.
Meanwhile, China has vowed to retaliate against 54% tariffs on Trump’s imports, as well as the European Union, which faces a 20% obligation.
French President Emmanuel Macron has called on European countries to halt investment in the US, but other trading partners in the country, including Japan, South Korea, Mexico and India, have appeared cautiously despite the imminent damages, saying they plan to curb retaliation when they seek concessions.
Despite Macron’s appeal to boycott US investment, the UK’s foreign minister says he is working to attack economic transactions with the US.
In the meantime, allies and rivals have similarly warned that tariffs will be a devastating blow to global trade.
Christarina George Eva, managing director of the IMF, said the tariffs “explicitly represent a significant risk to the global outlook at a time when growth slows.”
US Secretary of Commerce Howard Lutnick and senior trade adviser Peter Navarro said on Thursday that the president was determined and that the increase in tariffs was not negotiated.
“Taxes give us a great power to negotiate. We have always had it. I used it very often in the first administration, as you saw, but now we take it to a whole new level.”
