very little, other than to reduce the amount of capital retail investors have at their disposal to buy crypto because of higher costs on goods and services.
No more using crypto as hedging?
You can use crypto like you would otherwise use it… a trade war will have very little effect on the crypto markets. If you’re asking will people use crypto to hedge against something else thereby driving the price up, i don’t see that happening because it’s not really possible to hedge against rising prices of products that use steel or aluminum, or whatever other goods are affected by Trump’s ill-conceived trade war. The goods people need cost what they cost, and if those prices go up, then people are going to have less money to invest in crypto. That’s the extent of the effect by my thinking. Institutional investors will still play in the crypto sandbox like they have been, business as usual most likely.