BiyaPay Analyst: U.S. Reinitiates 232 Investigation, Tariffs May Escalate Inflation Pressure, Increasing Downside Risk for Bitcoin

On September 25th, the U.S. Department of Commerce announced an investigation under Section 232 of the Trade Expansion Act regarding the import of robots, industrial machinery, and medical devices. This section grants the President the authority to impose tariffs on imports that pose a threat to national security, and the investigation results will be submitted within 270 days. Analysts hold the view that this move is likely to significantly expand the potential tariff scope and increase import costs. BiyaPay analysts pointed out that if the new investigation leads to the implementation of tariffs, it may raise costs in the U.S. manufacturing and medical sectors, exacerbating inflationary pressures. As the Federal Reserve still needs to balance employment and prices, rising inflation will compel monetary policy to maintain a tighter stance for a longer period, potentially further strengthening the U.S. dollar. A strong dollar usually suppresses the performance of risk assets, particularly Bitcoin. Historical experience indicates that during periods of rising interest rate expectations or high inflation, Bitcoin struggles to maintain its role as a safe-haven asset and may face pressure due to tightened liquidity. Currently, BTC is fluctuating at high levels, and if tariffs interact with inflation, it could trigger a new round of downside risks. In this context, BiyaPay provides 0-fee spot and contract trading and supports users in investing in U.S. and Hong Kong stocks using USDT, assisting investors in flexibly adjusting their positions in volatile market conditions to seize risks and opportunities.