US Tariffs Start Today: 10%-12.5% Levies on Dozens of Countries
The US has started new tariffs today under Section 301 of the 1974 Trade Act, citing failure to stop “forced labor.” The US Trade Representative (USTR) announced on July 23 that the levies will apply to dozens of countries and regions and will range from 10% to 12.5%.
The new US tariffs take effect on US Eastern Time on July 24 and are designed to cover 99% of US trade volume. Only some categories—such as certain agricultural products, medicines, aviation parts, and steel/aluminum—are reported to receive exemptions.
Traders should note that these new US tariffs will stack on top of previously implemented tariffs. The combined effect increases potential costs and risk of supply-chain disruption for import-heavy sectors, which can spill over into broader risk sentiment.
This comes just as the prior 150-day global temporary tariff arrangement expires this week, signaling a move toward longer and wider trade friction rather than a near-term rollback.
Bearish
This news is macro-negative for risk assets because the US tariff regime is widening and intensifying. The article says the new US tariffs (10%-12.5%) start immediately, cover 99% of trade volume, and largely stack on top of existing tariffs. Historically, when tariff coverage broadens and exemptions remain limited, markets often anticipate higher input costs, slower trade volumes, and weaker earnings—conditions that tend to reduce appetite for volatile assets like crypto.
Short-term: Traders may react to the “policy risk” headline by de-risking and moving to safer liquidity, especially if equities and FX show stress. Higher uncertainty around future trade measures can also raise volatility expectations, which often pressures risk-on positioning.
Long-term: If this policy persists beyond the temporary 150-day window, it can weigh on global growth and corporate margins, potentially keeping rates/financing conditions and risk premia elevated. That environment has usually been unfavorable for sustained crypto rallies unless offset by strong crypto-specific catalysts.
Net: While crypto is not directly mentioned, the broad, stacked tariff impact is consistent with prior periods of trade escalation that typically drove a cautious stance across global markets—hence a bearish bias.