The Trump administration has announced an extension of the suspension on tariffs targeting Chinese imports until August 31, 2025. The move comes amidst ongoing trade negotiations and legal disputes that challenge the legality of previous measures. The announcement triggered notable reactions not only in traditional markets but also across the cryptocurrency space, where Bitcoin surged past $105,000.

Federal Courts Challenge Trump’s Tariff Powers

In May, two key court rulings questioned the legal foundation of Trump’s tariff policies. The U.S. Court of International Trade ruled that the tariffs on imports from China, Canada, and Mexico exceeded the powers granted under the International Emergency Economic Powers Act (IEEPA). A day later, a separate ruling from a federal court in Washington, D.C., sided with two American toy companies, finding the imposed tariffs unjustified.

Both courts concluded that IEEPA does not authorize broad use of tariffs as a tool for domestic or international trade policies. The Trump administration quickly filed appeals and requested temporary stays to keep the tariffs in place during ongoing trade talks.

Key Trade Deadline Set for July 8

The White House has now set a firm deadline of July 8, 2025, for securing major trade agreements. If no deals are finalized by then, tariffs will automatically resume after a 36-day grace period.

“This pause is strategic,” said a White House spokesperson. “It allows negotiations to proceed without the immediate pressure of sanctions—but it’s temporary.” Officials insist that tariffs remain a critical tool in enforcing fair trade, especially regarding issues like drug trafficking and trade imbalances.

Crypto Markets React – Bitcoin and Ethereum Rally

The crypto market reacted swiftly to the news. Bitcoin, which had dipped below $103,000, rebounded to over $105,000 following the announcement. This builds on a similar rally in April, when Trump first announced a 90-day pause, sending Bitcoin from $74,500 to over $82,000.

By May, Bitcoin had reached a new peak near $112,000. Other digital assets joined the rally: Ethereum gained 2.67% to reach $2,606.89, while XRP and Dogecoin also recorded daily gains following the extended tariff freeze.

Critics Warn of Tariff Fallout on U.S. Industry

While the Trump administration frames tariffs as a leverage tool, many economists and trade groups warn of long-term consequences. Financial analyst Peter Schiff commented on X:

“Tariffs might help steel and aluminum makers now, but they hurt downstream industries. Jobs will be lost across the board.”

Critics argue that higher import costs disrupt supply chains and weaken the global competitiveness of U.S. manufacturers who rely on imported materials.



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