Here’s how President Trump’s new reciprocal tariffs are affecting Bitcoin (BTC), and which countries are most involved
🌍 Affected Countries
Trump’s updated tariffs — effective early August 2025 — target nearly 70 countries, introducing levies ranging from 10% to above 40% depending on trade relations and negotiation status .
Some specific rates include:
Syria: ~41%
Laos & Myanmar: ~40%
Switzerland: ~39%
Canada: increased from ~25% to ~35% (due to USMCA context)
South Africa: ~30%
India: ~25%
Taiwan & Vietnam: ~20%
Many other countries, including smaller economies like Lesotho, Cambodia, and Madagascar, face rates up to 50% .
---
📉 Bitcoin's Reaction
Short‑term Volatility
Every major tariff announcement has stirred BTC price moves:
On announcements targeting Japan, South Korea, Malaysia, Laos, Myanmar and others, BTC dropped nearly 0.7%, slipping under $108K .
A 25% tariff on India, slated from August 1, caused BTC to drop to around $117 K from previous highs near $118–119 K .
Broader uncertainty from tariffs pushed BTC down roughly 0.5–1%, dragging sentiment across crypto markets .
Medium to Long‑Term Trends
Analysts forecast initial market weakness but believe Bitcoin could benefit as a hedge against inflation and weakening fiat currencies over time .
One expert warns that repeated tariff ultimatums risk trapping BTC in a price “gridlock”—unless resolution comes soon .
---
🔍 Why Do Tariffs Impact Bitcoin?
1. Investor Sentiment Shifts
Trade conflicts increase uncertainty, prompting short‑term withdrawals from risk assets like BTC .
2. Rising Input Costs for Crypto Firms
Heavy tariffs on hardware imports (especially mining rigs from China) raise operational costs, straining mining profitability .
3. Macro Effects on Currency
Tariffs can dampen U.S. growth and weaken the dollar—beneficial conditions for BTC as a perceived store of value .
---
✅ Summary Table
Country / Region New Tariff Rate Short-Term BTC Impact Notable Observations
India ~25% BTC fell to ~$117 K Market sentiment shaken prior to August 1 start
Japan, South Korea ~25–30% BTC dipped below ~$108 K Letters issued July triggering volatility
Vietnam, Taiwan ~20% Mixed – less sharp declines Partial trade deals may have eased uncertainty
Laos, Myanmar, Syria ~40–41% Broader uncertainty, modest BTC reaction Smaller trade volumes but prominent in news media
Canada ~35% Minor impact (due to USMCA protections) Rate increase noted in Canada–U.S. policy context
---
🧭 Final Takeaways
Countries with new tariffs include India, Switzerland, Laos, Myanmar, South Korea, Japan, Vietnam, Taiwan, South Africa, Canada, and many more with rates between 10%–50% .
The crypto market, especially Bitcoin, has reacted negatively in the short term to tariff announcements, reflecting increased risk-off sentiment and economic uncertainty.
In the long run, analysts see Bitcoin potentially benefiting if fiscal pressures weaken the U.S. dollar, although continued regulatory or supply-chain disruptions could delay gains.
Would you like a breakdown of a specific country's tariff rate or more details on BTC volatility trends?
