No tariffs, no taxes, no fees
Imagine a world where buying an iPhone doesn't require deciphering a complex web of tariffs, taxes, and fees. Picture a scenario where international trade flows as smoothly as your favorite streaming service — no buffering, no interruptions. Sounds like a utopian dream? Well, with the advent of cryptocurrencies, this dream might not be as far-fetched as it seems. And
Let's dive into how recent tariff policies are impacting global prices and explore the tantalizing possibility of a crypto-driven trade.
Trump's Tariffs and How They Will Affect Global Prices
In a move that sent shockwaves through the global economy, President Donald Trump announced on April 2, 2025, a sweeping set of tariffs aimed at reshaping U.S. trade relationships. Dubbed "Liberation Day," this policy imposes a baseline 10% tariff on all imports, with significantly higher rates targeting specific countries. For instance, imports from China face a 34% tariff, while goods from the European Union are taxed at 20%.
To put this into perspective, let's consider the iPhone — a quintessential global product. Before these tariffs, the production and sale of an iPhone involved multiple countries, each contributing components and labor. The imposition of these tariffs means that the cost of importing these components and the final product into the U.S. has increased substantially. Consequently, consumers can expect a noticeable hike in retail prices, making gadgets and other imported goods heavier on the wallet.
iPhone Price: With and Without Tariffs
Base production cost:
Tariff (
Adjusted production cost: $485 + $164.90 = $649.90
Profit margin factor: $799/ $485 ≈ 1.65
New buyer price (before VAT): $649.90×1.65 ≈ $1072
VAT (20%):
-
Original VAT: $799×0.20 ≈ $159.80
-
New VAT: $1072×0.20 ≈ $214.40
Final buyer price (with VAT):
-
Original: $799 + $159.80 ≈ $958.80
-
New: $1072 + $214.40 ≈ $1286.40
Below is a summary table:
|
Description |
Before Tariff |
After Tariff |
Change |
|---|---|---|---|
|
Production Cost |
$485 |
$485 |
$0 |
|
Tariff (34% of $485) |
$0 |
$164.90 |
+$164.90 |
|
Buyer Price (Before VAT) |
$799 |
$1072 |
+$273 |
|
VAT (20%) |
$159.80 |
$214.40 |
+$54.60 |
|
Final Buyer Price (with VAT) |
$958.80 |
$1286.40 |
+$327.60 |
These figures are approximate and assume that Apple maintains its profit margin.
And the new tariffs are far from the only regulatory markup that affects the price. There are also old tariffs, commissions, duties, and taxes. Therefore, the real price of an iPhone without all this could be up to 30-50% less.
While the iPhone serves as a prominent example, it's essential to recognize that these tariffs affect a broad range of products, potentially leading to widespread price increases across various sectors.
Conclusion
So, what happens if we ditch fiat and move all international trade to Bitcoin? No tariffs. No extra fees. Free and secure international trade... The iPhone, and pretty much everything else with a global supply chain, would cost hundreds less. As a business founder, you would be able to sell more by making your products more affordable by not adding all these extra costs.
Take our example — Trump’s 34% import tariff bumps the iPhone price from $958 to over $1,280. That’s $325 straight out of your pocket and not a single extra megapixel in return.
In a Bitcoin-based system, the whole chain simplifies. You're not paying to cross borders. You're not financing geopolitical slap fights. You're just paying for what you buy — with instant, secure, peer-to-peer transactions that don’t ask permission and don’t get delayed by bureaucracy.
If trade were settled in crypto, the only thing slowing things down would be how fast you can copy-paste your wallet address. What do you think? Is that possible?
