01.08.2025 09:26
The cryptocurrency market has plunged into chaos, experiencing a dramatic downturn fueled by President Trump's imposition of sweeping tariffs on numerous global trade partners. This aggressive escalation of trade tensions resulted in the liquidation of over $570 million in long cryptocurrency positions, highlighting the market's vulnerability to geopolitical instability.
President Trump's administration recently unveiled a complex new tariff structure impacting more than sixty countries. These tariffs, ranging from 10% to 50% and effective August 7th, differentiate between nations based on their trade balance with the United States. Countries with a trade surplus face a 10% base tariff, while those with a deficit incur a minimum of 15%. Ongoing negotiations continue with key trading partners, including China and Mexico.
Canada, however, faces a particularly harsh impact, with a significant increase in tariffs on certain exports starting August 1st. While the USMCA agreement exempts a substantial portion of bilateral trade, Trump's administration has raised the overall tariff rate on Canadian goods to 35%. As Drew Fagan, a professor at the University of Toronto's Munk School of Global Affairs, pointed out, most trade between the U.S. and Canada, primarily originating within those countries, will remain tariff-free under the existing agreement.
The Trump administration's multifaceted tariff strategy has provoked strong international condemnation. The diverse and uneven application of these tariffs has caused considerable friction, as evidenced by the sharp criticism from New Zealand's Trade Minister, Tom McClay. He voiced concerns about the unwarranted 15% tariff imposed on New Zealand, contrasting it with the lower 10% levy on neighboring Australia, asserting that these tariffs are detrimental to global trade. The impact is particularly severe on Southeast Asian nations, which face some of the highest tariff rates levied by the Trump administration, with some countries enduring levies exceeding 40%. This situation highlights the far-reaching and potentially destabilizing consequences of this escalating trade conflict.
