Bitcoin News Today: Trump Tariffs Spur Global Market Volatility, Crypto Slides 2% to 20%

Trump’s re-introduction of tariffs has sent shockwaves through global markets, including the crypto sector, as investors brace for an escalating trade conflict. The announcement, dubbed “Liberation Day,” triggered a sharp drop in Bitcoin to around $75,000 in late April amid concerns that aggressive taxation on imported goods could drive inflation and lead to a U.S. recession [1]. However, the market experienced a partial rebound when Trump announced a temporary delay in implementing tariffs, allowing key economies to negotiate trade agreements [1]. Despite this reprieve, the August 1 deadline remains firm, signaling no extensions for countries that have yet to strike deals [1].

Several major economies, including the European Union, the United Kingdom, Japan, and South Korea, have secured trade agreements to avoid the full brunt of the tariffs [1]. Yet, as of late Thursday, the White House revealed that dozens of countries—many of them less developed—would face higher import costs on goods shipped to the U.S. [1]. Notably, Canada now faces a 35% tariff on certain goods, while Mexico has been granted an additional 90-day reprieve [1]. Around 90 countries in total are expected to experience increased trade costs, with a base tariff of 10% affecting even unnamed nations [1].

The new tariffs will generally take effect from August 7, with sea freight tariffs kicking in from October 1, providing a short window for further negotiations and helping to cushion the impact on holiday shopping [1]. Asian stocks were hit hard on Friday, suffering their worst week since “Liberation Day,” and similar declines are expected in European and American markets [1]. Analysts warn that raising tariffs to levels not seen since World War II could backfire economically, causing self-inflicted harm without delivering long-term benefits [1].

Bitcoin and the broader crypto market have not been immune to the uncertainty. While Bitcoin has remained above $115,000, it has dropped by 2.3% over the past 24 hours. Altcoins have fared worse, with Ether down around 5%, XRP losing nearly 6%, and meme coins like pump.fun and Pudgy Penguins plummeting by 20% and 11%, respectively [1]. The uncertainty surrounding tariffs has added pressure on institutional investors, potentially triggering capital outflows from crypto ETFs and worsening selling pressures [1]. The positive momentum from the recent White House crypto report has also been overshadowed by the renewed tariff rhetoric [1].

Investors in both crypto and equities are grappling with the lack of clarity that accompanies the evolving trade tensions. While major earnings reports have been released recently, the full impact on corporate profitability remains unclear. Retailers are likely to pass on increased costs to consumers, which could dampen spending and further strain economic growth [1]. Meanwhile, a key unknown remains whether the U.S. and China, the world's largest exporter, can reach a deal by August 12. In April, Trump had suggested that tariffs on Chinese goods could soar as high as 145% [1].

The erratic nature of Trump’s announcements, combined with typically lower trading volumes during the summer, raises concerns that Bitcoin may struggle to stabilize in the near term [1]. For now, investors remain on edge as they await further developments in what is quickly becoming one of the most significant trade conflicts in recent history.

Source: [1]Trump Tariffs Return — What Does It Mean for Bitcoin and Crypto? (https://cryptonews.com/exclusives/trump-tariffs-return-what-does-it-mean-for-bitcoin-crypto/)