Trump Announces 40% Tariffs on Seven Nations, Bitcoin Drops 1.56%

On July 8, 2025, President Donald Trump announced that tariffs on goods from seven nations would commence on August 1, 2025. This decision came after a three-week reprieve on the return of sweeping "Liberation Day" duties, which was initially set to resume on July 9, 2025. The affected nations include Japan, South Korea, Malaysia, Laos, Myanmar, and others. Trump's administration has been sending letters to foreign officials notifying them of the rates on imported goods, with no further extensions beyond the August 1 deadline. The tariffs are part of Trump's broader trade strategy, aimed at addressing trade imbalances and negotiating more favorable trade deals. The rates vary by country, with some facing tariffs as high as 40% on certain goods. For instance, Laos and Myanmar are set to face tariffs of up to 40%, while other nations like Japan and South Korea will see 25% tariffs on their imports. Additionally, Trump has threatened duties as high as 200% on pharmaceutical imports and a 50% tariff on copper imports to the US.

The announcement has sparked reactions across various sectors. Copper prices saw a significant jump, reflecting the market's response to the potential tariffs on copper imports. Meanwhile, major pharmaceutical stocks experienced a decline as investors reacted to the threat of higher tariffs on pharmaceutical imports. The tech-heavy Nasdaq Composite index rose slightly, while the S&P 500 and Dow Jones Industrial Average dipped, indicating a mixed reaction from the broader market. The impact of these tariffs on the cryptocurrency market has also been a topic of discussion. Bitcoin's price fell below $108,000 on Monday, following Trump's proposal of sweeping new tariffs. The market's response to the tariffs suggests that investors are concerned about the potential economic fallout and the broader implications for global trade. However, the extent to which these tariffs will affect the cryptocurrency market remains uncertain, as the market is influenced by a multitude of factors beyond trade policies.

Trump's tariff strategy has been met with both support and criticism. Supporters argue that the tariffs will help reduce trade deficits and encourage domestic production. Critics, however, contend that the tariffs could lead to retaliatory measures from other countries, potentially escalating trade tensions and harming global economic growth. The administration's approach to trade negotiations and the potential for further tariffs will continue to be closely watched by investors and policymakers alike. Bitcoin is holding steady around $108,700, showing resilience while the global markets react to Trump’s Tariffs. Bitcoin remains mostly unfazed and shows growing confidence among investors. The institutional demand also remains strong with steady ETF inflows. Trump has warned earlier that if 14 countries don’t strike trade deals by early next month, then tariffs will jump back to the higher April levels. Recently, he slapped tariffs of 25% to 40% on 14 countries, and it quickly impacted the crypto market. Within 24 hours, the total market had dropped 4.5% and all the major coins were trading in red. Bitcoin dipped 1.56% to just under $108,000, while Ethereum fell 1.89% to $2,535. Dogecoin saw the biggest drop, sliding 4.78%. This was similar to what happened in April, when U.S. trade tensions sent Bitcoin below $80K and triggered major sell-offs. Trump has also announced an additional 10% tariffs on countries that support BRICS. With more tariffs set to kick in on August 1, the crypto market could stay under pressure, and further declines are also possible. Critics warn that Trump’s tough tariff plans could hurt the global economy and even push the U.S. toward a recession. But he has held by them and says that it’s necessary. The U.S. just added over $350 billion in debt in a single day, hitting a new all-time high and the biggest spike since 2024. Analysts claim that this is bullish for Bitcoin and crypto as concerns over fiat stability continue to grow. The hopes for a July rate cut have also faded from 90% to just 61%. The rising tariffs and inflation fears may keep the Fed from easing, and this could limit crypto’s upside. However, Trump claims that according to a new CEA study, tariffs had “zero” impact on inflation. He is now calling out Fed Chair Jerome Powell to cut interest rates immediately. Bitcoin’s breakout is strong, and the market is holding up. Some analysts believe that the worst-case scenarios, including a potential war, are already priced in. With rising money supply, there could be bullish months for both crypto and stocks, targeting $120K–$130K for BTC. For Bitcoin to stay bullish, it needs to hold above $99,000. After dipping to $107,400 to fill its CME gap, BTC now has a solid shot at pushing toward the $110K-$114K range in the days ahead.