Following a few quiet months of tariff deadline extension, US President Donald Trump has hit several countries in the past week or so, with the latest being Mexico and all nations within the European Union.
Given BTC’s response to the initial such threats in April, the question now arises whether the asset’s recent resurgence and jump to uncharted territory will come to an end.
BREAKING: President Trump announces 30% tariff on the European Union and Mexico.
Trump says if they retaliate, these tariffs will be raised by the same amount as the retaliation. pic.twitter.com/JQ1HsLeseO
— The Kobeissi Letter (@KobeissiLetter) July 12, 2025
The letter sent to “Her Excellency” – EU’s Ursula von der Leyen, reads that it’s Trump’s “great honor” to demonstrate the strength and commitment of the two parties’ trading relationship, even though the US has “one of the largest trade deficits” with the Union.
Consequently, the POTUS has described the 30% tariffs, which will go into effect on August 1, as a “more balanced and fair trade” that will allow the US to continue its relationship with the EU.
At the same time, Trump’s letter reads that the EU will “allow complete, open market access to the United States, with no tariff being charged to us, in an attempt to reduce the large trade deficit” and issue the following warning:
“If for any reason you decide to raise your tarrifs and retaliate, then, whatever the number you choose to raise them by, will be added onto the 30% that we charge.”
The letter to the Mexican President, Dr. Claudia Pardo, carried a similar message and the same threat.
Recent history from earlier this year shows that bitcoin’s price tends to be highly affected by tariffs imposed or even threatened by the US President against other countries. Back in April, as Trump was slapping tariffs against essentially every country, BTC tumbled from over $100,000 to under $75,000 to mark a five-month low.
It has recovered a lot of ground since then, and it skyrocketed to a new all-time high earlier this week at over $119,000. It would be interesting to follow whether the latest set of tariffs will hinder its progress or will BTC rise above them.
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