DPRK intensifies crisis: US tariffs on Korea shake global markets

Markets Sense the Danger. As trade tensions between Washington and Seoul escalate, the specter of a bear market looms larger, especially as global economies are still recovering from successive supply pressures. What began as a promised $350 billion deal has now become a new battleground for trade conflicts, and U.S. pressure policies are resurfacing with frustrating strength.

Collapse of the Trade Agreement and a Surprise from Washington

American promises have evaporated into thin air. What was promoted and celebrated as a major strategic agreement has turned into mere media noise that quickly disappeared from reality. The American stance has taken a more severe and harsh turn, and the new negotiation policy is beginning to manifest through practical and impactful economic measures.

Washington’s latest signals are clear and explicit: the trade war is not over but has entered a new, more complicated phase. The question now posed by observers is: Is this a negotiating step or the beginning of a long-term economic tension?

25% Tariffs: A Direct Blow to South Korea’s Economy

The United States announced a 25% tariff on a long list of Korean goods, including:

• Automobiles and related components
• Wooden products and raw materials
• Pharmaceuticals and medicinal preparations
• Other manufactured goods

These measures represent a heavy blow to an economy heavily reliant on exports. South Korea has long depended on free trade, and any tariff disruption directly affects growth rates, employment, and corporate profits.

The Bear Market’s Impact on Global Supply Chains

The economic effects extend far beyond South Korea’s borders. While global supply chains are already under structural pressures, these tariffs deepen the crisis in an unprecedented way. Potential outcomes include:

• Sharp increases in production and final product costs
• Slowdowns in bilateral and global trade flows
• Resurgence of inflation pressures that seemed to have eased
• Weak economic growth in both emerging and developed markets

The bear market is creeping toward the broader economic horizon. Investors are watching with increasing concern, especially since these scenarios historically lead to sharp volatility in financial markets and commodity markets.

Pressure Strategy: Will It Lead to Better Deals or Deeper Problems?

It’s clear that Washington is using tariffs as a direct negotiation tool. The declared goal is to obtain better trade terms and restore balance to economic relations. But history teaches us that tariff wars rarely end as planned.

Real risks include:

• Reciprocal escalation of tariffs
• Harm to allied economies and foreign companies
• Decline in confidence in the global trading system
• Increased geopolitical instability

Cryptocurrencies React to Economic Pressures

In this tense economic context, cryptocurrency markets are beginning to reflect broader market sentiments. Some digital assets show upward movement despite the pressures:

Bitlayer (BTR) – Current price $0.09 with a 2.82% increase over 24 hours, indicating growing investor interest in layer-two solutions.

Hyperliquid (HYPE) – Trading at $32.47 with a 3.88% rise in 24 hours, reflecting demand on decentralized trading platforms.

Axelar (AXL) – The interoperability between blockchains maintains its appeal despite overall market volatility.

These movements suggest investors are seeking alternatives and opportunities in digital markets, especially as bear market risks hover over traditional markets.

Summary: A New Trade War on the Horizon

The reality is clear: trade tensions have not disappeared but have entered a more intense new phase. U.S. tariffs on Korean exports are not just a bilateral dispute but a sign of the return of protectionist trade policies as a preferred political option.

Under these pressures, the bear market continues to threaten global economic stability. Markets will remain volatile and turbulent, and investors must stay alert and prepared for various scenarios. The new trade war could be the beginning of a long chapter of economic uncertainty.