President Trump has embarked on implementing tariffs that aim to disrupt global trade balances, a move that was initially anticipated to be softened post-elections. Contrary to expectations, April marked the beginning of significant turbulence, and new phases of this process continue to unfold. This development holds critical implications, particularly for cryptocurrencies. Where do we stand in this evolving landscape?
Cryptocurrency Tariffs: The May 23 Effect
Trump recently announced his consideration of imposing a 25% import duty on Apple products manufactured in China or other countries. Furthermore, he remarked on the difficulty of reaching an agreement with the EU, hinting at a potential 50% tariff increase starting in June. This comes after a negotiation with China on May 12, which had previously reduced the contentious 145% tariff down to 30%. Despite this temporary de-escalation, Trump appears poised to escalate tensions once more.
Global Customs Tariff Dynamics
Initially, a 20% tariff was imposed on EU imports, followed by a temporary 90-day suspension, replaced by a global 10% tariff. With negotiations set to expire by July 9, the prospect of additional tariffs in early June introduces uncertainty and unease. The United Kingdom stands as the only country to have secured an agreement, continuing to pay a 10% tariff without facing further increases after July. Additionally, the US granted exemptions for steel tariffs valued at 25% and for the initial 100,000 vehicles imported from the UK, reducing their duty to 10%.
An agreement with India is anticipated within ten days, likely mirroring terms negotiated with the UK. South Korea and Japan are also seen as strong candidates for reaching agreements in the near term.
Nevertheless, European Union officials expressed confidence in reaching a consensus and maintaining calm through continued negotiations. The US Treasury Secretary Scott Bessent shares a positive outlook, anticipating pressure from Germany to finalize an EU agreement.
“My feeling is that we will announce several major agreements in the coming weeks.”
This optimism was one of the factors counterbalancing Trump’s aggressive rhetoric today. Consequently, BTC prices showed significant recovery after a sharp decline. Meanwhile, as the article was being prepared, Trump continued to escalate tensions with further statements.
“I’m not chasing an agreement with the EU; it’s set at 50%. If they begin relocating factories to the US, there could be delays in EU tariffs. (About Apple) More to come, including Samsung.”
