President Trump's 2025 tariff expansion has sparked significant criticism, with economists warning it acts as a tax on capital. The policy is projected to generate over $1.3 trillion in federal revenue by 2028, potentially affecting labor markets, corporate profitability, and investor sentiment. Morgan Stanley's Chief Economist, Michael Gapen, highlighted that businesses are currently absorbing these costs without passing them on to consumers. The expansion raises fears of renewed US-China trade tensions and possible market destabilization. Experts caution that the tariffs could slow economic growth and create inflationary pressures, which historically have implications for cryptocurrency markets, including Bitcoin and Ethereum.