Bitcoin‘s market value has seen a significant drop to $115,940 following the recent announcement of new tariff policies by the United States. Yet, its core value remains robust. These tariffs, according to the White House, aim to safeguard American labor, as many international players have refrained from formal negotiations. The oscillating currency trends invite a closer look at the unfolding events.
How Do New Tariffs Shape Global Relations?
Earlier this year, the U.S. revealed its tariff strategy, sparking various reactions across the globe. While a number of countries have chosen not to engage in dialogues with the U.S., certain nations have acknowledged the national emergency proclaimed on April 2. Furthermore, the White House disclosed that some countries have agreed to trade pacts with the United States.
“President Trump has overhauled trade policy, correcting decades of failure. Today’s Proclamation addresses many unilateral trade relations that influence foreign affairs, threaten economic and national security, and disadvantage American workers, emphasizing the commitment to restoring America’s economic sovereignty.” – The White House
What Strides Are Made in Trade Agreements?
The new trade deals showcase significant commitments from various global partners. The European Union has pledged to procure $750 billion worth of energy from the U.S. by 2028, involving a $600 billion investment and a 15% tax. Japan has also announced its intention to inject $550 billion and face a similar tax obligation. Meanwhile, the UK has agreed to partially expand its markets for American exports, without impacting tax rates. Additional agreements with countries like Indonesia, the Philippines, and South Korea are underway.
Some vital figures relating to tariffs and logistical measures include:
- Tariffs on Canadian products rose from 25% to 35%.
- USMCA-related goods avoid IEEPA tariffs.
- Products diverted from Canada to dodge the 35% tariff face a 40% substitute tariff.
- Goods from Taiwan attract a 20% tariff.
- Tariffs on Cambodian items are set at 19%.
- Malaysian goods see a 19% tariff.
- Vietnamese imports are taxed at 20%.
- Swiss items face a 39% duty.
- Myanmar products incur a 40% tariff.
- Turkish imports are levied at 15%.
- South Korean goods bear a 15% tariff.
- Items from New Zealand face a 15% tariff.
The DXY index observed a rise of 3% over a six-day period, reflecting the broader market’s response to these tariff changes. Additionally, projections for the upcoming months suggest a 60% probability of maintaining the current interest rate in September, with an anticipated 60% likelihood of a reduction in October.
Bitcoin has managed to hold a support level at $115,800, despite the turbulence, with just minutes to go before the monthly financial epoch closes. While the market remains volatile, the industry’s resilience amidst these policy shifts hints at an ever-evolving landscape.
