Bitcoin drops $860 after Trump’s 25% tariffs: What’s really going on? President Donald Trump has officially imposed a 25% tariff on imports from Japan and South Korea, shaking global markets and triggering a fresh wave of uncertainty. The announcement, made via Truth Social, is part of a broader push to correct what Trump called “unfair trade practices” by key U.S. allies. The decision comes just days ahead of a critical July 9 trade deadline, and could extend to other countries like India and the European Union if trade talks fail. Meanwhile, Bitcoin slipped below $108,000, hit by investor fears of escalating global trade conflict and shrinking market confidence.
Bitcoin tanks after Trump’s 25% tariffs: What’s happening now?
Bitcoin just took a hit—and so did the rest of the market—after President Donald Trump announced sweeping 25% tariffs on imports from Japan and South Korea, sparking global jitters. The move, which takes effect August 1, sent shockwaves through equities and crypto alike, as traders quickly shifted into risk-off mode.
How much did Bitcoin fall after Trump’s tariff news?
Shortly after the tariff announcement, Bitcoin dropped from over $109,000 to around $107,970, shedding roughly $860 in value in a matter of hours. That’s a 0.79% decline on the day. While that may not sound huge in percentage terms, it’s a clear signal: investors are uneasy.
Other cryptos followed suit:
Ethereum (ETH) fell over 2%
Solana (SOL) and XRP were both down around 1.5–2%
Why did crypto react so quickly?
This is all about risk sentiment. Trump’s tariffs add uncertainty to the global economy—especially trade—and that kind of uncertainty tends to scare investors away from volatile assets like Bitcoin. Traders moved capital out of crypto and into safer havens like bonds and the U.S. dollar.
Also Read: Oil prices may plunge below $60 as OPEC+ ramps up production — here’s what Goldman Sachs and BNP Paribas are predicting for the global energy market
Analysts are also pointing to macro pressure: when global trade slows, growth slows. That fear ripples into stocks, commodities, and yes—crypto.
How are global markets reacting?
It wasn’t just Bitcoin:
Even gold briefly slipped before stabilizing
Wall Street is clearly watching these tariff threats closely. The announcement had a ripple effect across global financial markets.
What are analysts saying about Bitcoin’s future?
Crypto experts are split. According to Cointelegraph, repeated tariff threats could push Bitcoin back below key support zones, possibly testing levels under $100,000 if investor sentiment worsens. They also warned that “endless ultimatums” from Trump could suppress bullish momentum in the near term.
But not all analysts are bearish. Over at FXStreet, some believe these tariffs could actually help Bitcoin long term. If the U.S. dollar weakens because of escalating trade wars, Bitcoin might gain strength as a hedge against inflation and global instability.
If Bitcoin breaks below $100K, we could see more downside. But if bulls manage to hold the line and global tensions ease, a bounce-back isn’t out of the question.
Why did Trump hit Japan and South Korea with 25% tariffs now?
The White House’s latest move reflects rising frustration over what Trump described as “deep and long-standing trade imbalances.” For weeks, the administration has been signaling tariff action unless new trade terms were reached. The 25% tariff is aimed at key sectors—especially automotive and electronics—that heavily impact both Japan and South Korea’s exports to the U.S.
The timing is strategic. With the July 9 deadline looming, the tariffs are meant to pressure countries into finalizing revised trade agreements. Trump stated clearly: “If countries don’t renegotiate fair trade deals, they will face consequences.” India and the European Union are next on his radar, as both are still negotiating.
How are Japan and South Korea reacting to the U.S. trade move?
Both Japan and South Korea have responded cautiously. While they haven’t retaliated immediately, diplomatic channels are buzzing behind the scenes. Japan's Ministry of Economy, Trade and Industry expressed “serious concern” over the sudden hike in tariffs, calling for urgent dialogue. South Korea echoed similar sentiments, warning of potential disruptions to supply chains.
The two countries are critical trading partners for the U.S. In 2024, Japan exported goods worth over $148 billion, and South Korea around $115 billion to the U.S. Most of these exports are concentrated in automobiles, semiconductors, consumer electronics, and steel—all now facing a 25% cost hike. If no resolution is reached, these tariffs could trigger retaliatory duties and deeper diplomatic rifts.
How is the Bitcoin market reacting to Trump’s tariff escalation?
Bitcoin’s price slid to just above $108,000, reversing gains from earlier this year. The crypto market, already on edge from macroeconomic uncertainty, reacted sharply to the trade tension. Traders dumped holdings fearing a broader slowdown in global trade and investor confidence.
This isn't the first time Bitcoin has dropped in response to trade news. Back in April, when the first round of tariffs was introduced, BTC tumbled to $78,000. The correlation between geopolitics and crypto volatility is growing stronger, and the current decline shows just how sensitive markets have become.
Crypto analysts note that BTC broke below a key support level, and unless global tensions ease, the price could face more downward pressure. Many investors are now watching the July 9 deadline closely, as more tariffs could rattle not just Bitcoin but the broader financial markets.
Could other countries like India and the EU be next on Trump’s tariff list?
Yes, they could be. In his latest post, President Trump hinted that India and the European Union might face similar tariff measures if trade deals are not finalized soon. Talks with the EU have reportedly stalled over disputes in agricultural subsidies and digital trade, while India has been reluctant to lower tariffs on U.S. tech and pharmaceutical imports.
Trump’s strategy is clear—apply tariff pressure to force countries to the negotiation table. “We’re not going to let the U.S. be taken advantage of anymore,” he wrote. If new deals aren’t struck by the deadline, expect additional rounds of duties.
The possible extension of tariffs to these regions could further destabilize global trade. India is a growing tech and manufacturing hub, while the EU is a critical ally and trade partner. Any added tension could spill over into stock markets, energy prices, and even job markets globally.
Is this a dip to buy or a warning sign?
In the short term, Bitcoin’s price could remain under pressure as markets digest Trump’s aggressive trade stance. But for long-term holders, this may still be part of a healthy pullback in a bigger bullish cycle—especially if geopolitical uncertainty ramps up.
What could happen next if trade tensions continue to escalate?
The risk of a full-blown trade war is rising. So far, both Japan and South Korea have held off on retaliation, but analysts warn that patience may not last. If counter-tariffs are introduced, it could snowball into a global tit-for-tat scenario affecting manufacturing, tech, and logistics industries worldwide.
Already, global supply chains are being tested. Auto stocks dropped in Tokyo and Seoul, while electronics manufacturers signaled potential delays due to cost increases. In the U.S., investors pulled money out of risky assets, pushing major indexes lower and raising fears of a market-wide correction.
Crypto markets, especially Bitcoin and Ethereum, are now being viewed as barometers for investor anxiety. With BTC already down sharply, further trade escalations could push it below $100,000, especially if retaliatory measures come into play before or after July 9.
FAQs:
Q1: Why did Trump impose 25% tariffs on Japan and South Korea?
To address trade imbalances and push for fairer trade deals before the July 9 deadline.
Q2: How did Bitcoin react to Trump’s new trade tariffs?
Bitcoin dropped sharply below $108,000 due to rising trade tensions and investor fear.
Source Name : Economic Times