Bitcoin News Today: Trump's 25% India Tariff Triggers $216B Crypto Market Loss

Bitcoin experienced a sharp price decline following the imposition of a 25% tariff by U.S. President Donald Trump on Indian imports, effective August 1. The announcement came amid stalled negotiations on a broader U.S.-India trade deal, leading to heightened market uncertainty and significant sell-offs in the cryptocurrency sector. The crypto market lost approximately $216 billion in value as a result, with Ethereum and leveraged positions particularly affected [1].

The tariff decision was framed as a response to India’s high non-monetary trade barriers and its continued energy imports from Russia. Trump cited these factors as justification for the new measure, which also includes an additional penalty. Despite the tensions, India remains committed to finalizing a trade deal with the U.S. by the end of 2025, having already outlined key terms in April. New Delhi had been among the first countries to engage in trade discussions with the Trump administration, following Prime Minister Narendra Modi’s high-profile visit to Washington in February 2025 [2].

The timing of the tariff announcement, just days before key U.S.-India trade negotiations were set to conclude, has raised concerns about its potential to disrupt bilateral commerce. The two countries traded $127.9 billion in 2024, with the U.S. serving as India’s largest export market [2]. The move also aligns with Trump’s broader strategy to pressure countries that continue to trade with Russia, particularly in energy. Simultaneously, the U.S. has given Moscow a 10-day deadline to stop fighting in Ukraine and warned of secondary tariffs on nations that continue to purchase Russian oil [3].

Despite the immediate market turbulence, institutional interest in Bitcoin remained evident. MicroStrategy, for instance, purchased 21,021 BTC following the price drop, signaling continued long-term confidence in the asset despite short-term volatility. Historical trends suggest that similar trade war-related announcements have triggered risk-averse behavior, often resulting in sharp price swings for Bitcoin and Ethereum, as well as declines in DeFi total value locked (TVL) [1].

The spillover effects of the tariff announcement extended beyond crypto markets. Apple shares dipped in pre-market trading, reflecting investor concerns about the impact of the tariffs on U.S. companies operating in India. Analysts noted that while the Indian rupee and stock indices had already weakened in anticipation of the tariffs, the broader economic impact remains uncertain [6].

The U.S. decision has drawn comparisons to past tariff actions, including those on China and other trade partners, which have had mixed results in altering trade behavior. Trump’s approach appears to be part of a broader pattern of using economic pressure as a tool in his global trade strategy, particularly as he campaigns for re-election and seeks to reshape U.S. trade policy [2].

Source:

[1] Bitcoin falls below $118,000 amid Fed, tariff caution

https://www.economies.com/crypto/news/bitcoin-falls-below-$118,000-amid-fed,-tariff-caution-46988

[2] Trump Hits Indian Imports With 25% Tariff Starting Aug. 1

https://financialpost.com/pmn/business-pmn/trump-hits-indian-imports-with-25-tariff-starting-aug-1

[3] Trump says US to impose 25% tariff on India from August 1

https://ca.investing.com/news/economic-indicators/trump-says-us-to-impose-25-tariff-on-india-from-august-1-4126168

[6] Apple dips after Trump slaps 25% tariffs on India

https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TR1AN:0-apple-dips-after-trump-slaps-25-tariffs-on-india/