Former Trump insider Anthony Scaramucci warns that U.S. tariffs on major trading partners could hurt the economy but benefit Bitcoin.
Fears over the effects of U.S. tariffs are still rocking the markets, with traders predicting a potential recession. One of them is Anthony Scaramucci, founder of SkyBridge Capital and former White House Communications Director under Donald Trump.
In an interview with the investment platform Saxo, shared exclusively with crypto.news, Scaramucci explained the effects that tariffs could have on the U.S. and other economies, as well as Bitcoin.
crypto.news: The Trump administrationโs tariffs are igniting fears of a recession. Bitcoin is seen both as a hedge against inflation and a risk asset. Which narrative will prevail in the case of a recession?
Anthony Scaramucci : So this is a really good question, and so the short answer is yes, it will prevail. And the longer answer is, we only have, I would say, we only have three or four weeks of data where all of a sudden Bitcoin, which was tied to the MAG7 and tied to the NASDAQ, boom, drops.
Every time the NASDAQ went down or there was risk off, weโre finally seeing this non-correlation where itโs trading a little bit like Gold, which is outperforming, but itโs trading a little bit like gold in the last three weeks.ย And I think this is a direct result of the Wall Street sales machine. I think you have an enormous amount of inflows taking place in the BlackRock ETF and other ETFs.
CN: If U.S. tariffs take effect once again, which economies will be the most impacted? Will the U.S. take the brunt of the damage, or will Europe and China be the bigger losers?
AS: Unfortunately for the world, thereโs no decoupling. We learned this in the global financial crisis. Weโve learned this in other recessions. If the US is going into a recession, itโs going to pull the rest of the world down into a recession.
What I find interesting about the capital markets is that the FTSE and the DAX, on a relative basis, are doing better than the US market since the trade war started. So that means that long-term international capital allocators are saying, โWhoa, I canโt trust the US like I used to.โ
Germany is saying that itโs going to borrow money to rearm itself. That means that their industries are going to be doing better. Thereโll be more profitability. The UK is saying that they have to get a little bit more muscular on defence and other things.
And so I think on the margin, some of the larger European industrial nations will do better because of what Trump is doing to the capital markets in the US. Heโs making them more capricious. Heโs making them more unpredictable as a result of his policy. But I think that everyoneโs going to get hurt.
