Trump threatens a 70% tariff by August 1st. The country must complete the trade deal by July 9th or face sudden import duties based on Trump’s new warning.
Impact Cryptography: While global market anxiety could be the first to be crypto, long-term instability could drive the adoption of Bitcoin and Stubcoin.
There is a 70% tariff on the table. President Donald Trump issued a harsh warning. If US trading partners do not finalize a new trade agreement by July 9, they could face up to 70% tariffs on imports from August 1st.
This bold move under Trump’s “America First” policy has already begun rattling global markets and could quickly ripple into the crypto space.
July 9th deadline: No extensions, Trump says
Trump made that clear. The country will not get an extra day to attack new trade deals beyond the July 9 deadline. Currently, most partners have temporary 10% tariffs, but if they do not attack the transaction, that figure could rise to 70%.
Who has secured the deal so far?
Some countries have already managed to avoid hiking tariffs.
- UK: In May, we signed a contract to maintain a 10% tariff on special conditions for automobiles and aircraft engines.
- Vietnam: We have agreed to a 20% export tariff to the US, and US goods are tax-free in Vietnam.
But others are on the verge of missing the deadline and are still negotiating, or even worse.
Countries at risk: Japan, South Korea, EU, India
- Japan and South Korea have collapsed after initial progress.
- The EU is split internally, delaying potential transactions.
- India resists US demands, particularly regarding access to genetically modified crops and agricultural markets.
With less than a week left, the clock is ticking quickly and ticking.
Send a warning letter to non-compliant countries
The US government is reportedly sending official letters to at least 12 countries, detailing the exact tariff rates they will face if an agreement is reached. Countries such as South Korea, Indonesia and the EU are competing to finalize transactions by July 9th.
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Stock markets respond to trade uncertainty
The market has already shown signs of pressure:
- European Market: -1.02% yesterday
- Japanese Market: -1.91% this week
- Indian Market: -0.59% this week
Analysts warn that fears about the world trade war are pushing investors into safer assets.
What does that mean for cryptography: volatility first, bullish later?
If new tariffs create global economic uncertainty, risky assets like crypto can be first immersed. However, in the medium to long term, crypto can benefit from it.
- Bitcoin and stubcoin can be hedges against inflation.
- When Fiat currency is under pressure, investors could move to crypto.
- Market instability often leads to an increase in crypto adoption.
Trump’s tariff threat could shake up markets in the short term, but it could drive Crypto’s growth as a decentralized alternative to traditional finance.
