Bitcoin Market Braces for Volatility Amid Trump’s New Tariff Announcement

Donald Trump, President of the United States, has announced a 30% tariff on imports from the European Union and Mexico, effective August 1. This marks the highest U.S. average tariff since 1910.

On July 12, 2025, President Donald Trump unveiled the imposition of a 30% tariff on imports from the European Union and Mexico, set to begin August 1. This tariff announcement positions the U.S. at the highest tariff rate since 1910, reinforcing Trump’s ongoing protectionist approach to trade policy.

Tariff Impact: Raised Costs and Trade Flow Alterations

Market reactions have been immediate, with copper traders shifting over 230,000 tons away from China to the U.S., creating shortages and profits through increased arbitrage. David Lilley, Commodity Trader, reflected on this by stating:

Industry leaders have voiced confusion and concern regarding customer responses and logistical hurdles, with an Unnamed CEO from the Commodities Sector noting: “We have no idea how customers will handle it. We tried to forewarn them.”

The best physical trading opportunity I have seen, referencing the abnormal arbitrage created by rushed copper deliveries pre-tariff.

Market Data and Insights

Did you know? The last time U.S. tariffs reached similarly high levels was more than a century ago, emphasizing this tariff’s historical significance and potential for global trade disruptions.

As reported by CoinMarketCap, Bitcoin (BTC) currently trades at $118,052.42, with a market cap of $2.35 trillion. Over the last 24 hours, trading volume has seen a decline of 16.29% to $58.66 billion. Bitcoin’s circulating supply stands at 19.89 million BTC.

Insights from the Coincu research team point to expected financial shifts following these tariffs, with increased volatility in commodity-related assets. A potential regulatory response by the EU might further escalate trade tensions, hinting at significant changes in global trade dynamics and supply chain adjustments.