U.S. Treasury Warns of Possible Tariff Increase Amid EU Trade Talks

Scott Bessant, U.S. Treasury Secretary, stated on July 3 that tariff levels might revert to April 2 levels if no progress is made in trade negotiations with the European Union.

The potential tariff hike could impact both U.S. and EU economies, while market reactions remain cautiously observant.

Treasury Warning: U.S.-EU Trade Talks Under Scrutiny

Scott Bessant, U.S. Treasury Secretary, issued a warning on July 3 about potential tariff increases if trade negotiations with the European Union do not progress. He highlighted the importance of facilitating constructive dialogues to avoid a reversion to April 2 tariff levels. Bessant confirmed a meeting with EU negotiators to discuss ongoing trade issues.

The possible tariff escalation might contribute to economic tension in both regions. Without a resolution, tariffs could rise, potentially affecting various sectors and prompting changes in economic policies. Markets will likely monitor the situation closely, watching for signs of potential strain on international trade.

“We do not feel weak. We do not feel under undue pressure to accept an unfair deal.” — Maros Sefcovic, Trade Chief, European Union

Tariff Talks Boost Crypto Market Stability Amid Uncertainty

Did you know? In previous tariff tensions between the U.S. and EU, international markets saw a 20% increase in stock volatility, mirroring the potential upset in negotiations today.

Over the past 24 hours, Bitcoin’s value increased by 2.19%, climbing to $109,639.42 with a market cap of $2.18 trillion. Bitcoin’s market dominance sits at 64.32%, as reported by CoinMarketCap. In the last three months, Bitcoin has risen by over 33%, highlighting a steady growth phase.

According to Coincu research, prolonged negotiation difficulties could drive volatility across traditional and crypto markets. A potential rise in tariffs may prompt investors to seek safer assets, increasing demand for cryptocurrencies like Bitcoin and stablecoins. The research team believes careful management is crucial to maintain market stability and investor confidence.