President Donald Trump is once again stirring up the international trade market by putting 'America First' at the forefront. He warned that if trade negotiations are not finalized by July 9th, he will impose tariffs of up to 70% on imports starting August 1st. This bold move is expected to shake both the global financial markets and the cryptocurrency market.
President Trump emphasized that this measure will be implemented without further delay. Currently, a provisional tariff of 10% is applied to most countries, but if negotiations fail, it is expected to suddenly surge to 70%. As a result, major trading partners including Japan, South Korea, the European Union, and India are moving urgently ahead of the tight negotiation deadline.
Some countries have already avoided the tariff bomb by reaching an agreement. The UK will maintain a 10% tariff with special conditions for vehicles and aircraft engine sectors, while Vietnam has confirmed a 20% tariff rate and duty-free imports of US products. However, Japan and South Korea have fallen into a stalemate despite initial progress, and the European Union is experiencing delays due to conflicts among member states. India is also facing difficulties by rejecting US demands for genetically modified agricultural product imports and agricultural market opening.
The US State Department has officially sent letters to countries where negotiations are delayed, notifying the specific tariff rates that will be imposed if agreements are not reached within the deadline. The recipient countries include South Korea, Indonesia, and the European Union.
This protectionist trend is already quickly affecting traditional financial markets. Recently, major European stock markets dropped 1.02% in a single day, Japan declined 1.91% over a week, and India closed 0.59% lower. Economic experts diagnose that as global trade reduction concerns amplify, investors are moving funds to safer assets.
The cryptocurrency market is also expected to be unable to avoid short-term volatility. Since it is not classified as a 'safe asset' like gold or developed country bonds, and is still considered a risky asset. However, this could change in the medium to long term. The longer the world economic uncertainty persists, the more likely Bitcoin (BTC) or stablecoins will be re-examined as *inflation hedging tools* or *asset safe zones*.
President Trump's pro-cryptocurrency stance also adds weight to this possibility. He has positively evaluated the Bitcoin reserve system and is actively promoting institutional integration by nominating pro-cryptocurrency regulatory heads. However, regardless of policy goodwill, the global economic shock from tariffs is expected to act as a short-term risk factor for the cryptocurrency market.
Market participants know that President Trump's warning is not empty rhetoric. If he actually implements tariffs, risk-averse psychology could be further strengthened, temporarily constraining cryptocurrency prices. Conversely, if trading uncertainty causes distrust in the global financial system, decentralized assets like cryptocurrencies have a high chance of emerging as a new alternative.
Ultimately, the 70% tariff variable proposed by President Trump simultaneously means a shock wave in the short term and a growth opportunity for the cryptocurrency market in the long term. The points cryptocurrency investors must watch are the 'negotiation deadline of July 9th' and the economic environment changes that will be realized thereafter.
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