Bitcoin Declines as Trump Advances Plans for Global ‘Reciprocal’ Tariffs

On Wednesday, the price of Bitcoin experienced a sudden rise and fall following the White House’s advance on President Donald Trump’s eagerly awaited tariffs.

“For over 50 years, our country and taxpayers have been taken advantage of,” Trump stated from the White House Rose Garden. “But that’s going to change.”

Currently, the leading cryptocurrency is trading around $85,500, marking a 1.1% decrease over the last hour, as reported by crypto data provider CoinGecko. Bitcoin surged to a peak of $87,800 during Trump’s speech.

Trump announced a 25% tariff on “all cars made abroad” starting at midnight. He asserted that the U.S. is committed to supporting “our fantastic farmers and ranchers,” while refraining from mentioning specific industry tariffs.

Trump also indicated that there will be “reciprocal tariffs” on countries imposing fees on U.S. goods, but stated that the total for each nation would be “around half of what they currently charge us.” This total will represent the “combined rate of their tariffs, non-monetary barriers, and other forms of unfair practices,” he added.

Furthermore, Trump stated that foreign countries will face a 10% “minimum baseline tariff,” positioning it as a cost for nations wishing to access U.S. markets.

For weeks, the president has referred to the self-imposed tariff deadline as “Liberation Day,” pledging to apply heavy tariffs on a variety of goods and the largest trading partners of the U.S.

In the lead-up to April 2, cryptocurrency prices have shown significant volatility, fluctuating based on investors’ predictions about how these tariffs will affect economic growth and inflation. Meanwhile, the administration’s communication regarding the tariffs has varied nearly every day.

White House Press Secretary Karoline Leavitt mentioned on Tuesday that the president’s team is still “fine-tuning” its tariff strategy, while emphasizing that Trump has made “a decision and a determination.”

In previous discussions, Trump had suggested “reciprocal tariffs” on nations that impose duties on American products, but it remains uncertain whether these measures could apply universally or if specific goods or industries might receive exemptions.

These tariffs might influence the Federal Reserve’s considerations regarding rate cuts this year. Analysts suggest that if tariffs lead to ongoing price pressures, assets deemed risky, like cryptocurrency, could continue facing difficulties as the central bank maintains higher borrowing costs to tackle inflation.

During Trump’s trade tumult, Bitcoin’s value fell to as low as $77,000 last month. Currently, markets seem to have absorbed most of the uncertainty surrounding Trump’s trade policies, according to Thomas Perfumo, a global economist at the crypto exchange Kraken.

“While the discussions around ‘Liberation Day’ and the related tariff initiatives continue to cause concern, much of the anticipated impact appears to have already been factored into the crypto market,” he told Decrypt.

Edited by James Rubin