As of the time of writing, the price of Bitcoin (BTC) 
$78,340 has surged back to $107,500, with encouraging news emerging from the European Union (EU). Recently, it was speculated that the EU might retaliate against Trump to strengthen its position, but the latest developments indicate the opposite. The recent increase in BTC prices is also related to these events.
Current Status of Tariffs
According to a report by the WSJ citing informed sources, the EU is preparing to lower import tariffs as a means to win over Trump. EU leaders are considering what sacrifices they might make to strike a deal on tariffs. Potential concessions under discussion include lifting non-tariff barriers and increasing imports from the U.S., including liquefied natural gas (LNG) and other products.
We are nearing the final days of trade negotiations. In May, Trump announced the possibility of imposing a 50% tariff on the EU, but he repealed this move in early June, causing significant fluctuations in the cryptocurrency market at that time.
By July 9, the EU must reach a resolution on tariffs. It seems impossible for Trump to remove the standard 10% base tariff, which everyone has become accustomed to. However, many items still have higher rates, and if no agreement is reached, the EU faces a potential 50% tariff on all items. Ultimately, reaching an agreement is inevitable. Therefore, the concessions need to be quickly determined and presented to the U.S.
Previously, the EU had considered multiple options, including $100 billion in additional imports.
Impending July 9 and Cryptocurrencies
As the deadline approaches, further volatility is expected in cryptocurrencies. Countries like Germany and Italy are eager for a swift resolution, while others, such as France, seek to strengthen their bargaining positions through retaliatory tactics. Extending the July 9 deadline may not be out of the question. Cryptocurrencies are likely to react negatively to this, as markets favor a resolution that eliminates “uncertainty.”
German Chancellor Friedrich Merz commented this week, stating:
“Negotiating 400, 500, 600 different tariff codes with the Americans is very difficult.”
We are indeed discussing a highly complex process. While uncertainty remains strong, the EU’s preparations for concessions indicate a potentially favorable outcome for cryptocurrencies. However, the European Union is also preparing for the worst-case scenario, continuing its work on a retaliation package that could reach up to €95 billion.
