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🗓️ Economic step details
On July 30, 2025, Trump announced via the 'Truth Social' platform that the United States would impose a 25% tariff on Indian goods starting August 1, 2025, along with an 'additional penalty' due to India's relations with Russia in the fields of energy and defense.
Although he indicated a possible tariff ranging between 20-25%, the timeline and final decision have not fully materialized yet, with negotiations continuing.
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📉 Market reaction and Bitcoin price
Trump's statements put the markets in a state of uncertainty and fears of a global trade war, leading to a drop in high-risk asset prices. Indeed, the price of Bitcoin fell below $118,000 during trading on July 29, 2025, with an approximate contraction of 0.8%.
The reasons for the decline are as follows:
Investors are moving away from volatile assets.
Increased chances of a slowdown in global economic growth and inflation fears, making Bitcoin less attractive in the near term.
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📊 The broader context: How does Bitcoin react to tariff wars?
1. In February 2025, during Trump's announcement of a 25% tariff on imports from Canada and Mexico, the price of Bitcoin crashed to $91,441, a drop of about 6.2% in a single session.
2. In July 2025, following similar tariffs imposed on Japan and South Korea, Bitcoin fell from around $109,000 to an average of $107,970, a drop of about $860 in one hour (~0.8%).
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🤔 What are the future forecasts?
In the short term, it seems that Bitcoin will experience more volatility if trade tensions continue, especially if tariffs exceed the 25% rate.
Some analysts see an opposing scenario in the long term: if this trade war leads to a weakening of the US dollar or rising inflation, Bitcoin may turn into an alternative hedge.
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✅ Summary
The imposition of a 25% tariff on Indian imports has a global impact, not just on India, reflecting a state of economic instability.
Bitcoin, as a high-risk asset, is suffering in the short term due to a decline in investor appetite, but it may survive or partially benefit in the long term if confidence in the dollar deteriorates.
