Trump Tariffs Spark 2% Bitcoin Drop, 14.6% Average U.S. Tariff Rate by August

On July 10, 2025, U.S. President Donald Trump announced new tariffs targeting multiple countries, including the European Union and Japan. The announcement, made via social media, follows Trump's policy of imposing tariffs aimed at recalibrating trade relationships and boosting domestic industry competitiveness. These tariffs are predicted to increase the average U.S. tariff rate to 14.6% by August, according to an analysis. Consequently, industry experts anticipate significant shifts in trade balances, potentially affecting market confidence and leading to investor caution.

The tariffs have had a significant impact on the cryptocurrency sector, with Bitcoin experiencing a sharp decline following Trump's announcement. The cryptocurrency's value dropped below $108,000, reflecting broader market concerns and a wave of risk-off sentiment. This behavior contrasted with Bitcoin's typical portrayal as a safe haven asset, similar to digital gold. Ethereum also saw a decline, dropping over 2% in value. The fallout from the tariffs was swift and wide-reaching, with Bitcoin's drop mirroring the S&P 500’s steep decline on the same day. This synchronized risk-off behavior across different asset classes highlighted the interconnected nature of global markets.

The tariffs have also had a significant impact on other sectors. Japanese automakers, such as Toyota and Honda, were among the first and biggest casualties, with their shares tumbling amid fears of retaliatory trade measures. Meanwhile, the U.S. dollar surged against both the yen and the won as investors sought relative safety. The market dip, though relatively mild, coincided with the S&P 500’s slump, leading analysts to warn that Bitcoin is acting less like a hedge and more like an indicator of global risk.

The White House’s decision to push the anticipated tariff deadline to the 1st of August did little to ease nerves. Instead, the sudden shift caused more uncertainty. Press Secretary Karoline Leavitt stated that the new timeline ensures partners have every opportunity to reach fair agreements, but Trump’s unpredictability on trade, coupled with a fresh threat targeting BRICS-aligned nations, left investors scrambling. Treasury Secretary Scott Bessent attempted to calm markets by stating that President Trump is focused on “the quality of trade deals, not the quantity.” However, for now, markets remain stuck, waiting, watching, and bracing for further developments. The delayed tariff deadline and fresh warnings from BRICS-aligned nations added more confusion to an already nervous market, further complicating the geopolitical landscape and its impact on Bitcoin and other risk assets.

The Coincu research team suggests that these tariffs could lead to long-term shifts in crypto mining economics, impacting U.S.-based operations reliant on foreign hardware. The potential for increased domestic production is noted, subject to regulatory and market adaptations. Expert consensus highlights the need for strategic adjustments to accommodate these trade changes.