Reciprocal tariffs are trade taxes imposed by one country to mirror another nation's import duties on its goods. For example, if Country A charges 20% on Country B's exports, Country B may respond with a 20% tariff on Country A's products. These tariffs aim to balance trade relationships, protect domestic industries, and pressure foreign governments to lower trade barriers.
Reciprocal tariffs often trigger market uncertainty, leading to sell-offs in risk assets like cryptocurrencies. Recent examples include Bitcoin’s price swings below $96,000 amid Trump’s 2025 tariff announcements and over $250 million in crypto market liquidations within 24 hours of related news.
