US President Donald Trump is expected to impose new tariffs against several countries this week. The announcement comes as the temporary global tariffs of 10% implemented earlier this year are expiring on Friday. Amid the impending Trump tariffs, the crypto market is under pressure, with Bitcoin and altcoins poised to experience renewed volatility.
The crypto community is now on edge as the 90-day pause on US President Donald Trump’s tariff plans is coming to an end. With the temporary 10% tariff expiring on July 24, the president is expected to impose new tariff plans on a dozen countries this week.
With the upcoming new Trump tariffs, the crypto market is experiencing heightened volatility and uncertainty. Currently, the crypto market looks promising with positive signals, as it has rebounded from the recent crash. At press time, the overall market is valued at $2.26 trillion, up 2.13% in a day.
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Major cryptocurrencies, including Bitcoin, Ethereum, and XRP, are also in the green zone. While BTC is trading at $56,564, with a 2.52% daily surge, ETH and XRP are trading at $1,924 and $1.15, respectively.
But the situation may change as the Trump tariff deadline is ending. Previously, major tariff announcements had triggered uncertainty across global financial markets. This usually impacts cryptocurrencies like BTC to a greater extent. As investors tend to immediately react to changing trade policies, the crypto market can face sharp fluctuations. Also, in similar situations, investors may reduce exposure to risk assets, shifting focus to safe-haven assets like gold and silver.
In addition, Trump tariffs can boost the cost of imported goods, pushing inflation higher. Elevated inflation rates can again push crypto prices down, as investors fear that the Federal Reserve may hike interest rates.
(adsbygoogle = window.adsbygoogle || []).push({});US Trade Representative Jamieson Greer stated that the Trump administration is expected to take action on tariffs soon. However, he didn’t provide any specific timeline. He noted,
“We expect to see some action soon…I can’t really specify a timeline right now. I have responsibility to brief Congress and other stakeholders before I really reveal that kind of thing. But we do expect action soon.”
The new Trump tariffs are expected to begin at a 10% baseline rate as before. At the same time, the Trump administration is also looking for ways to impose higher tariffs on certain countries under existing US trade laws.
Earlier this week, Trump reportedly imposed 50% tariffs on most Canadian goods. He accused the country of unfair trade practices involving US automobiles, alcohol, and dairy products. As the president is preparing to launch new tax policies on more countries this week, the crypto market currently remains uncertain about what lies ahead.
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