Looking back, tariffs have always been a core tool of international trade—protecting local industries, influencing consumer choices, and filling government coffers. The issue is that as the world becomes increasingly digital, the story of tariffs no longer revolves solely around tangible goods.

A new topic is now at hand: how should cryptocurrency be taxed? How do we balance trade tariffs and digital assets? The aftermath of China-U.S. trade frictions and the rise of global protectionism tell us one thing - traditional economic policies and digital financial systems have become intertwined.

Do you want to figure out how tariffs affect traditional markets and the cryptocurrency sector? Let's discuss them one by one.

**What exactly is a tariff, and how does it disrupt traditional markets?**

In simple terms, tariffs are taxes imposed by the government on imported goods. They usually range from 5% to 25% of the value of the imported goods, but in special circumstances, manufacturers may have to pay higher rates. The government uses tariffs for two purposes: first, to fill the national treasury, and second, to raise the prices of imported goods, forcing consumers to buy domestic products, which is a form of indirect protection for local businesses.

**Historical lessons are worth a look**

In 1930, the United States implemented the Smoot-Hawley Tariff Act, imposing high import duties on over 20,000 goods. This set of protectionist measures was originally intended to safeguard American industries during the Great Depression, but what happened? Other countries were not foolish; they retaliated, and global trade volumes plummeted dramatically.

This is the lesson of history - a country's protectionist policies often trigger a domino effect, ultimately hurting the global economy. Today's cryptocurrency market is also inextricably linked to the ripples of these macro policies.