- Trump announced tariffs affecting Japan and South Korea.
- Bitcoin prices fell below $108,000.
- Risk-averse sentiment intensified across cryptocurrency markets.
The new tariffs imposed by Trump’s administration have heightened global market uncertainties, impacting cryptocurrency and equity markets. Bitcoin, Ethereum, and other major altcoins faced sell-offs due to the increased risk sentiment amid trading tensions.
On July 7, 2025, the White House imposed 25% tariffs on products from Japan and South Korea, effective August 1, and threatened additional tariffs on countries supporting BRICS economic policies. — Donald J. Trump, Former President, White House
Donald J. Trump, the former U.S. president, announced a 25% tariff on products imported from Japan and South Korea, effective August 1. Treasury Secretary Scott Bessent mentioned a three-week extension for countries to negotiate, delaying the enforcement for some pending deals.
The cryptocurrency market reacted swiftly, with Bitcoin declining 0.8% and Ethereum 0.6%. The broader U.S. equity markets reflected similar sentiments, weakening by about 1%, while Treasury yields saw an uptick, indicating a flight to safety.
Jeff Mei from the crypto exchange BTSE highlighted a potential easing in monetary policy, contingent on soft inflation data, which could alter Fed’s rate strategy. However, crypto sentiment remains cautious as clarity on global trade policy is awaited.
Experts suggest the tariffs could sharpen safe-haven flows into USD and U.S. Treasurys, reflecting historical trends during macro disruptions. Cryptocurrency prices have mirrored these concerns, with caution prevailing among investors.
