In a world where trade policies are as stable as a three-legged dog on roller skates, the good folks in the Trump administration have decided to dip their toes into the shimmering waters of Bitcoin (BTC). Yes, you heard that right! While the President’s tariffs are shaking the markets like a maraca at a particularly enthusiastic fiesta, some bright sparks in the government are investing in the very sectors that are being tossed about like a salad in a tornado.
On a fine Tuesday, which is just another day in the land of the free and the home of the brave, the Trump administration announced it would extend the tariff delay on China. Meanwhile, the United States Commerce Department decided to introduce aluminum tariffs on over 400 products, including wind turbines, mobile cranes, railcars, motorcycles, and construction equipment. Because who doesn’t want to pay more for their shiny new toys?
Now, the unpredictability of these tariffs has raised eyebrows and concerns among national trade groups like the National Foreign Trade Council (NFTC). They’ve been heard muttering about how these tariffs are “delaying growth, disrupting operations, and raising legal concerns among companies.” But hey, who needs stability when you can have chaos?
Lutnick’s firm buys Bitcoin amid tariffs
In a plot twist worthy of a soap opera, recent filings with the Securities and Exchange Commission revealed that US Secretary of Commerce Howard Lutnick, through his family-controlled firm, Cantor Fitzgerald, has been playing a game of financial hopscotch. He’s been investing and divesting in sectors that are as affected by Trump’s economic policies as a cat is by a laser pointer.
While US law has some provisions to protect against conflicts of interest, Lutnick received a waiver on July 8, allowing him to participate “in particular matters … that may have a direct and predictable effect on Cantor Fitzgerald.” Because nothing says “trust me” like a waiver, right?
According to an Aug. 14 filing with the SEC and subsequent analysis from Quiver Quantitative, Cantor Fitzgerald decided to invest in a Fidelity Wise Origin Bitcoin Fund (FTBC) and stocks in companies like chip producer AMD, Tesla, Alibaba, and Robinhood. Because why not throw a little crypto into the mix while you’re at it? Their investments in FTBC and Robinhood totaled a staggering $120.7 million and $116.8 million, respectively. Talk about a financial buffet!
Meanwhile, Bo Hines, the executive director of the Presidential Council of Advisers on Digital Assets, suggested after a White House interview in April that the government could use tariffs to fund purchases for the newly created Strategic Bitcoin Reserve. Because if you can’t beat them, just buy them, right?
Analysts have deemed Cantor’s other investments as either resistant to tariff policies (looking at you, Alibaba) or directly benefiting from them (hello, Tesla!).
Bartlett Naylor, a financial policy advocate at the watchdog Public Citizen, quipped, “When the Oxford English Dictionary next updates its conflict-of-interest definition, it’ll use Cantor Fitzgerald’s crypto ventures and the Lutnick connection as a prime example.” Now that’s a legacy!
Other members of Trump’s inner circle have also been caught in the web of conflict of interest. David Sacks, the administration’s crypto and AI Czar, sold about $200 million in crypto investments at the beginning of Trump’s second term to avoid any nasty accusations. But fear not! He too received a waiver, claiming that “the financial interests covered by this waiver are not so substantial as to be deemed likely to affect the integrity of your services to the Government.” Because integrity is just a suggestion, right?
On July 11, US-based AI firm Vultron announced it received $22 million from Sacks’ venture capital firm, Craft Ventures. They even noted Sacks in their announcement, stating:
“Craft Ventures, co-founded by White House AI adviser David Sacks, backed the round, signaling investor confidence that Vultrons [sic] is the category-defining system for AI-driven federal growth. This funding will accelerate Vultron’s mission to transform enterprise federal growth and elevate the workforce.”
As AI firms race to dominate the data center landscape, the Trump administration has made AI development a top priority. The White House released its AI action plan on July 10, which included investing in production capacity for AI hardware. Because if there’s one thing we need, it’s more robots!
Uncertainty as Trump delays another 90 days
On Tuesday, US Treasury Secretary Scott Bessent declared that the status quo of 90-day delays with China was “working pretty well.” Well, that’s reassuring! In an interview with CNBC, he mentioned that the tariffs were projected to bring in $300 billion in revenue but that he’d “have to revise that up substantially.” Because who doesn’t love a good revision?
Trade groups, however, are less optimistic about the effects of these tariffs on the American economy. The NFTC warned that “economists and industry experts warn of broad potential impacts on supply chains.” Because nothing says “economic stability” like a good old-fashioned supply chain crisis!
They also noted that the tariffs are creating uncertainty and increasing the cost of raw materials across supply chains. “In sectors like advanced manufacturing, the stakes are particularly high. Four in five companies said tariffs threaten their ability to innovate in areas critical to competitiveness, from fuel efficiency to safety and sustainability,” they lamented.
But it’s not just big businesses feeling the pinch; everyday consumers are also in for a surprise. The Budget Lab at Yale University reported that “the price level from all 2025 tariffs rises by 1.8% in the short-run, the equivalent of an average per household income loss of $2,400 in 2025.” Ouch!
Tariffs on imported food have led to price hikes in domestic produce. In July, wholesale prices for domestic fresh and dry vegetables were 38.9% higher than the year before. So, if you were planning on eating your greens, you might want to reconsider!
While tariffs have yet to critically impact construction materials, Home Depot has reported that homeowners are delaying large projects due to rising prices. The company is trying to offset the effect tariffs will have on prices by diversifying its supply chain. Because nothing says “home improvement” like a little uncertainty!
As the US and world economy hold their breath, waiting to feel the full impact of Trump’s unpredictable trade policy, it’s clear that some members of his administration are ready to use that uncertainty to their own advantage. And who knows? Maybe they’ll even throw in a Bitcoin or two for good measure! 🎩💰
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2025-08-21 16:37