U.S. President Donald Trump has announced an immediate five-percentage-point increase in the global tariff rate, raising it from 10% to 15%. The move, framed as a measure to correct trade imbalances and protect American industry, has intensified debate over its economic impact - though crypto markets have so far remained largely unfazed.
In a post on Truth Social, Trump defended the decision, writing:
He added that further tariffs could follow in the coming months.
Legal Pushback and Political Friction
The tariff hike arrives amid ongoing legal battles over presidential authority under the International Emergency Economic Powers Act (IEEPA). The Supreme Court previously limited Trump’s ability to impose certain tariffs under emergency powers, a decision the President publicly opposed.
Despite the political friction, Trump signed an executive order - with congressional approval - implementing the updated global import tax. The move follows earlier reciprocal tariffs introduced last April, which were later deemed unlawful.
The renewed tariff push has created uncertainty around global trade stability, especially as major U.S. trading partners evaluate potential countermeasures.
UK Officials Warn of Economic Impact
The reaction abroad was swift. The British Chambers of Commerce (BCC) voiced concerns that the tariff increase could hurt UK exporters.
He warned that many UK goods exported to the U.S. could face an additional 5% levy, except for those covered under the Economic Prosperity Deal.
Bain further argued that tariff hikes risk slowing global growth and raising costs for American consumers, emphasizing the importance of stable and predictable trade conditions for businesses on both sides of the Atlantic.
While analysts continue to assess the broader consequences, UK officials believe the immediate impact on key sectors - including steel, automobiles, and pharmaceuticals - may be limited.
Crypto Market Reaction Muted
Historically, major tariff announcements have triggered volatility across risk assets, including cryptocurrencies. However, this time the digital asset market showed surprising stability.
At the time of the announcement, Bitcoin was trading near $68,000, while Ether remained relatively steady. The Total3 index - which tracks the combined market capitalization of all cryptocurrencies excluding BTC and ETH - slipped less than 1%, settling around $713 billion.
This muted reaction contrasts with previous tariff-related sell-offs, suggesting either that markets had already priced in geopolitical risk or that crypto is temporarily decoupling from macro trade headlines.
ETF Outflows Add Pressure
Although prices remained steady following the tariff news, crypto markets have been dealing with notable capital outflows.
Investors withdrew approximately $316 million from U.S. Bitcoin exchange-traded funds (ETFs) over the past week, with only one day showing net inflows. Ethereum funds experienced an even steeper decline, with more than $123 million in outflows.
Major asset managers such as BlackRock, Fidelity, and Grayscale were among those seeing significant redemptions. These movements often coincide with short-term price weakness, as both Bitcoin and Ethereum recorded weekly declines of roughly 2% and 5%, respectively.
Still, according to data from SoSoValue, total net inflows into crypto ETFs remain substantial at nearly $54 billion, with combined net assets around $85.3 billion - highlighting sustained long-term institutional participation.
Broader Economic Uncertainty Ahead
Trump’s tariff increase adds another layer of uncertainty to already fragile global markets. While crypto has not yet reacted sharply, sustained trade tensions could influence inflation expectations, Federal Reserve policy, and overall investor risk appetite.
For now, the market appears to be watching and waiting - balancing trade policy uncertainty against broader macro and liquidity conditions.
