Trump Tariffs Delayed Again, Markets Unfazed as Bitcoin Hits Record High

Peter Schiff, a prominent economist, recently highlighted the market's apparent confidence in the US President's reluctance to enforce his proposed tariff rates. Schiff suggested that traders are "playing a game of chicken with Trump," believing he will delay the tariff decision as he has done in the past. This sentiment reflects a relaxed market attitude towards the recurring Trump tariffs strategy, with Schiff hinting that the President's ego could alter the outcome this time.

Since February 2025, the Trump administration has announced multiple tariffs, each triggering temporary market declines. In April, the President announced a combined 104% duty on Chinese imports, to which China responded with 34% tariffs on US goods and restrictions on some rare earth materials. The crypto market reacted swiftly, with Bitcoin and Ethereum experiencing double-digit crashes. The S&P 500 and Nasdaq also posted sharp losses. In May, the President expanded tariffs to include the European Union, targeting both EU goods and foreign-manufactured Apple products. This resulted in a panic that erased $1.5 trillion from U.S. markets in days. However, the increase was delayed until August 1 following talks with EU leadership.

During the Trump China trade war, the market crashed, with Bitcoin declining 4% to $74,647, while Ethereum declined 10% to $1,396. World Liberty Financial (WLFI), a crypto project tied to the President's network, made a series of notable acquisitions during this period of market stress. On April 12, WLFI acquired 4.89 million SEI tokens with $775,000 USD. Altogether, WLFI has invested about $346.8 million across 11 different altcoins. WLFI’s activity often aligns with periods of tariff-related volatility. On July 4, the organization also proposed enabling public trading of its native token, $WLFI, just a few days before the Trump tariffs deadline. Some market experts consider the project may be capitalizing on uncertainty.

Unlike past events, the market reaction to the Trump tariffs announcements has shifted. Despite the tariffs, Bitcoin reached a record high of $111,907. It is currently trading at $111,286 with an increase of 2.31%. This shift suggests that investors are viewing crypto as a store of value rather than a risk asset. This change in perception has led to speculation about how much the market still worries about the effect of Trump tariffs in the future.

Looking ahead to August 1, the new tariff rate, if implemented, will affect almost 100 nations, with rates between 10% and 50%. Brazil has already expressed opposition to the increased rates, with President Lula indicating that he will respond if the US President levies a 50% tariff rate on Brazil. As the deadline nears, focus will not only be on whether the Trump tariffs are realized but also on how crypto-related participants such as WLFI keep adapting to the evolving reality. Traders are playing chicken with the President, thinking he’ll back off like before. But if he doesn’t flinch this time, the impact could be real. Peter Schiff sees the risk, even if markets don’t. With Bitcoin hitting new highs, some are clearly bracing for a crash, or a shake-up. We’ll know by August 1 who serves first.