XRP News Today: Trump's 34% Tariffs Spark 4% Ethereum, 1.5% Bitcoin Declines

On April 2, 2025, President Trump announced new tariffs, significantly impacting the global trade landscape and the cryptocurrency markets. These measures, which include a 34% charge on Chinese imports and a 20% levy on European Union goods, align with his longstanding "America First" trade policy. The tariffs have sparked discussions among key U.S. government agencies and major crypto companies regarding responses and future policies.

Following the announcement, major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), witnessed sharp price declines. The crypto-related stocks like MicroStrategy and Coinbase also experienced noticeable declines. Analysts noted that the latest market fluctuations spurred concerns about inflation and potential recession, increasing investor caution and contributing to a "risk-off" sentiment affecting speculative investments.

The implementation of Trump's new tariffs marks a broader approach compared to previous trade actions, with a higher number of goods and regions affected. Historical data indicates that similar situations in the past have led to volatility in both traditional equity and cryptocurrency markets. Investors remain cautious as uncertainty looms regarding further policy adjustments or potential retaliatory measures.

On July 2, 2025, Bitcoin prices experienced a significant correction due to the announced tariff measures by President Donald Trump. This development influenced market sentiments and triggered a notable decline in the crypto market. The tariff threats led to a 4% drop in Ethereum prices and a 1.5% decline in Bitcoin. Other major cryptocurrencies, including Dogecoin, Ethereum, and XRP, also saw declines of 4.05%, 3.11%, and 2.81% respectively.

The tariff measures, which tend to drive up the cost of goods, created inflationary pressures. This situation pushed more investors towards Bitcoin, as it is often seen as a hedge against inflation. However, the renewed tariff warnings triggered market declines and crypto sell-offs, with Bitcoin holders largely remaining profitable amid growing uncertainty.

As the July 9 tariff deadline approached, President Trump ruled out the possibility of extending the pause on tariffs. His firm stance caused turbulence in the crypto markets, with major digital currencies experiencing notable declines. This decision came as Trump continued to press for trade agreements with several nations, and threatened to impose higher tariffs if negotiations failed.

The uncertainty created by the tariff talks led to a slide in the crypto market. Major cryptocurrencies like Bitcoin and Ethereum suffered extensive losses. Bitcoin price suffered more than 1.5% loss, and Ethereum almost 4%. Concurrently, XRP price dropped to $2.17, marking a decrease of 5.24%, and Dogecoin falling by 3.5%, trading around $0.75. Trade agreements and geopolitical risks are some of the macroeconomics that may cause cryptocurrency markets to be sensitive. President Trump has increased the uncertainty among investors regarding the macro-economic implications by ruling out the possibility of delaying the tariffs. With the trade deadline approaching, the crypto market is volatile and most traders are being cautious in their approach.

The continued uncertainty surrounding Trump’s tariff policy has placed additional pressure on the crypto market. With the possibility of higher tariffs on the horizon, the market could experience further turbulence in the coming weeks. The Trump administration has faced challenges in finalizing trade agreements with key partners, including Japan. While Trump has repeatedly threatened to impose higher tariffs on nations that do not reach satisfactory agreements, the U.S. has yet to secure many of the deals it has been negotiating. As of now, only a few agreements have been reached, with the U.K. and China being the most notable examples. However, these deals have not fully resolved the trade issues that Trump has highlighted. Treasury Secretary Scott Bessent has acknowledged that the administration is unlikely to meet its ambitious goal of securing 90 trade deals within 90 days. The absence of tangible agreements has created fears that the talks might be protracted past the July 9 deadline. Other analysts provide a possibility that negotiations may even last to early September, let alone any resolution. This stalling of trade agreement has not only created strained trade relations globally but it has also led to the instability in the market today. The result of such negotiations is now the matter of close attention of the investors in the crypto market, who are still forced to patiently bear the atmosphere of uncertainty.