Trump Tariffs Shake Crypto Markets Amid Global Trade Talks
US President Donald Trump has threatened higher Trump tariffs on nations that fail to open their markets. Originally due August 1, the reciprocal tariffs were postponed to allow more time for trade negotiations with the EU and Canada. So far, the US has secured tariff agreements with the UK, Vietnam, Indonesia, the Philippines and Japan, with Japan winning zero US import duties. On July 23, Trump reiterated on Truth Social that he will only lower rates if major economies open their markets and warned of even steeper duties for non-compliance. Analysts view the Trump tariffs threat as a negotiating tactic to gain leverage in deals.
The announcement rattled the crypto market. Bitcoin briefly dipped below $118,000, falling 0.5% to $119,038. Ethereum dropped 2.6% to $3,552 before a partial rebound. Among top tokens, BNB remained stable, while XRP, ADA and SOL slid up to 9%. Rising trade friction and dollar strength often trigger risk-off sentiment, fueling market volatility and pressuring cryptocurrency prices. Crypto traders should monitor ongoing tariffs developments and trade negotiations for potential impact on market trends.
Bearish
Short-term, the Trump tariffs announcement sparked a sell-off in major cryptocurrencies, evident in a swift drop of Bitcoin and Ethereum prices. The threat of higher duties increases dollar demand and risk aversion, which typically exerts downward pressure on crypto assets. In the medium to long term, persistent trade tensions may sustain elevated market volatility and dampen bullish momentum, as traders remain cautious amidst policy uncertainty. Overall, this development is bearish for crypto prices, especially for BTC and ETH.