As US President Donald Trump’s tariffs create an unpredictable trade environment, some members of his administration are investing in sectors affected by his policies, including Bitcoin (BTC).
On Tuesday, the Trump administration announced it would extend China’s tariff delays. At the same time, the US Department of Commerce will introduce aluminum tariffs on more than 400 products, including wind turbines, mobile cranes, railroad vehicles, motorcycles and construction equipment.
Trump’s unpredictability of trade tariffs has raised concerns among national trade groups such as the National Foreign Trade Council (NFTC), saying it “slows growth, disrupts operations and raises legal concerns between businesses.”
Amid this uncertainty, officials associated with the Trump administration have deepened their ties with companies affected by cryptography and his trade policies.
Lutnick’s company buys bitcoin in customs
As Sludge reported, recent applications to the Securities and Exchange Commission show that U.S. Secretary of Commerce Howard Lutnick is actively investing or selling sectors that influence Trump’s economic policies through his family-controlled company, Cantor Fitzgerald.
Although US law contains certain provisions to protect against conflicts of interest, Lutnick received the exemption on July 8th.
According to a filing with the SEC on August 14, subsequent analysis from Quiver quantification shows Cantor Fitzgerald invested in the loyal and wise Origin Bitcoin Fund (FTBC) and invested stocks in companies such as chip producers AMD, Tesla, Alibaba and Robinhood.
Cantor’s investments in FTBC and trading platforms were $120.7 million and $116.8 million, respectively. This came after Bo Hines, executive director of the Presidential Council of Digital Asset Advisors, after an April White House interview that the government could fund the purchase of the newly created strategic Bitcoin reserve.
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Meanwhile, Cantor’s other investments are considered by analysts to be resistant to customs policies that benefit directly from Tesla, Chinese e-commerce site Alibaba, or customs policies.
Bartlett Naylor, a monetary policy advocate for Watchdog Public Citizens, told Sludge:
Other members of Trump’s inner circle have shown that they have reported cases of conflicts of interest. The administration’s crypto and AI emperor David Sacks sold about $200 million in crypto investment at the beginning of Trump’s second term to avoid such claims.
However, following the sale, Sack received a similar waiver from Lutonic, claiming that “the financial benefits subject to this waiver are not as important as they are deemed likely to affect the integrity of services to the government.”
On July 11, US-based AI company Vultron announced that it had received $22 million from Sacks venture capital firm Craft Ventures. The company, which is pursuing a federal contract, recorded the bag in its announcement, saying:
“Craft Ventures, co-founded by White House AI Advisor David Sacks, supports the round and demonstrates investors’ confidence that Vultrons (sic) is an AI-driven category definition system for federal growth.
The investment from Sacks companies is as AI companies are expanding their investments in data centers and expanding their race for advantage. The development of AI is being cast as a top priority for the Trump administration. The White House released its AI Action Plan on July 10th, which includes investments in AI hardware production capacity. Trump also negotiated a hardline deal with individual high-tech companies that produce AI semiconductors.
Uncertainty when Trump is delayed by another 90 days
On Tuesday, U.S. Treasury Secretary Scott Bescent said the current situation with the 90-day delay with China is “working pretty well.”
In an interview with CNBC, he said that tariffs are projected to bring in $300 billion in revenue, but “it is expected to have to be revised significantly. …We’re going to beat the deficit on GDP. We’re starting to cut our debts and can be used as a offset to Americans at that point.”
Trade groups are not optimistic about the impact tariffs will have on the American economy. The NFTC said “economists and industry experts are warning about the widespread potential impact on the supply chain.”
The trade group said tariffs are creating uncertainty and increasing the cost of raw materials across the supply chain.
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“In sectors such as advanced manufacturing, there are particularly high interests. Four in five companies said it threatens their ability to innovate in areas essential to competitiveness, from fuel efficiency to safety and sustainability.”
Tariffs affect not only large businesses but also everyday consumers. “Price levels from all tariffs in 2025 rose 1.8% in the short term, representing an average loss per household of $2,400 in 2025,” Yale University’s Budget Institute said in a report on August 7th.
Tariffs on imported foods have led to jumps in domestic agricultural products. In July, wholesale prices for fresh and dried vegetables in the country were 38.9% higher than the previous year.
While tariffs have not yet had a significant impact on construction materials, Home Depot, a major home improvement and construction materials chain, said homeowners are slowing down large projects as prices increase. The company said it is trying to offset the impact of rates on prices by diversifying its supply chain.
The US and the world economy are still waiting to feel the full impact of Trump’s unpredictable trade policy. This has resulted in uncertainty and increased investor costs, but it is clear that some members of his administration are ready to use it for their own interests.
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