By: Yale Bock, Y H & C Investments
Over the last month, the most noteworthy business news centers around the ongoing negotiations between the United States and global countries regarding tariffs. It appears the United States is on the path to completing trade deals with the largest countries and regions in the world which will change the terms of trade between the respective areas. The most prominent announced deals are now with the UK, Japan, and the European Union. The European Union agreement sets import tariffs into the United States at 15%, higher than the UK tariff of 10%, but lower than the threatened rate of 25%. Clearly, each situation is different, but the Trump Administration has a priority to create more opportunity with foreign countries by equalizing trade terms on exports from the United States and imports from other countries. August first has been the drop-dead date for deal finalization, but with negotiations anything can be moved back or changed. I suspect the world and investors will have this behind us at year end.
In the United States, the Trump administration has been extremely aggressive in announcing investments into specific companies to help the country compete. Specifically, rare earths is an area where national defense, car manufacturing, electric vehicles, robotics, and electronics are all dependent on those critical elements. One could imagine more of these direct investments by the Trump Administration into strategic areas. The largest target of these expenditures is probably in the energy area, most heavily related to oil and gas. The nuclear industry qualifies, and plutonium may be on the radar. There is probably a good possibility it could also take place in the digital domain as well.
On that front, the Genius Act was signed by President Trump. It centers on stablecoins and payments. There are a few key takeaways from the bill, but the big one is the tremendous latitude and discretion given to the Treasury Secretary. It empowers him to help create the structures and legal protocols for banks and other financial entities to integrate stablecoins into the banking system. Here is an article from the Financial Times which brings up staking, or lending in the crypto and stablecoin space, and how it is starting to proliferate – Crypto lenders dial up risk with ‘microfinance on steroids’
Originally posted on August 1, 2025 on Yale Block’s blog/ newsletter
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