Trump announced a 30% tariff on the EU and Mexico, escalating global trade tensions.
This move surprised the market as Trump announced additional tariffs on many major trading partners to balance trade for the United States.
MAIN CONTENT
Trump announced a 30% tariff on the EU and Mexico, effective from August 1.
Experts warn that tariffs may cause greater harm to the EU than to the U.S.
The cryptocurrency and stock markets reacted more mildly this time due to expectations of improved negotiations.
How did Trump announce the tariffs on the EU and Mexico?
Trump officially announced a 30% tariff on goods from the EU and Mexico effective from August 1, despite market expectations that he would ease these measures.
In a letter to the President of the European Commission, Trump emphasized that the trade relationship between the United States and the EU remains unbalanced, with a long-standing deficit. He demanded that partners renegotiate terms to protect U.S. interests, directly mentioning the unfairness in bilateral relations.
The new tariff policy is 'part of a long-term trade strategy to bring the United States back to a fair position in the international arena.'
Donald Trump, former President of the United States, July 2025
Why is Trump determined to maintain the new tax levels regardless of partner reactions?
Trump warns that any retaliatory actions from countries will lead to the U.S. adjusting tariffs higher, demonstrating unprecedented firmness in his trade strategy.
Mexico has voiced its opposition to the U.S. tariffs and affirmed its national sovereignty, while the EU announced it would take proportional countermeasures. However, both remain open to further negotiations with Washington.
Economist Brian Jacobsen believes that the newly imposed tariffs are 'punitive' but will have a greater negative impact on the EU compared to the U.S., indicating that Trump may not easily abandon this policy.
"These tariffs are not only punitive but also require partners to renegotiate from a fairer position."
Brian Jacobsen, head of economics at Annex Wealth Management, 2025
What is the reaction of the cryptocurrency market and investors when new tariff information is released?
Although Bitcoin and major cryptocurrencies like Ethereum and Solana fell slightly after the announcement, investors on Wall Street are not panicking as they did before.
Bitcoin fell about 0.6% from the European session peak of $118,200, Ethereum lost 1%, along with Solana and Dogecoin dropping over 2%. Notably, BNB Token decreased by 0.7%, while XRP rose nearly 2%. This calmness is quite different from the sharp decline reaction in April when Trump first imposed tariffs.
Expert Jacobsen explained that investors hope the tax market could be adjusted down during negotiations, alleviating concerns about negative impacts on financial assets.
How do investors and financial experts assess the current market trends?
JPMorgan Chase CEO Jamie Dimon and many experts warn not to be complacent about the new tariff announcements, yet investors still believe that Trump can ease the taxes as he has done before.
The U.S. president's establishment of a negotiation deadline until August 1 did not cause market panic; stocks only fell slightly in the most recent trading session, reflecting expectations of a trade agreement rather than prolonged tension.
Factors April 2025 July 2025 Initial tariff rate 20% on EU goods and partners 30% tariff on EU and Mexico Market reaction Sharp decline in stocks and financial assets Slight decline, investors remain calm Trump's strategy Threatens to increase to 50% if negotiations fail Commits to tariffs from August 1 and threatens stronger retaliation.
Frequently Asked Questions
When will the 30% tariff take effect and on which countries? The 30% tariff will take effect on August 1 for goods from the European Union and Mexico. What is the official reaction of the EU and Mexico? Mexico opposes it as unfair; the EU warns of proportional responses but remains open to negotiations. How will tariffs affect the cryptocurrency market? Minimal impact, Bitcoin and Ethereum fell under 1%, while some tokens like XRP rose slightly. Will Trump reduce these tax levels in the future? Experts believe negotiation conditions could help reduce taxes, but Trump maintains a hardline stance. Will Trump's tariff actions cause the stock market to plunge? Minimal impact, only slight declines due to market expectations of upcoming negotiations.
Source: https://tintucbitcoin.com/tariff-30-cua-trump-de-nang-thi-truong/
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