EU Eyes 30% Tariff on US Goods as Crypto Market Remains Steady

The European Union is preparing to strike back with tariffs on American goods worth nearly €100 billion if no trade deal is reached with the United States by August 1. This aggressive response follows threats from former US President Donald Trump to impose a 30% levy on most EU exports.

EU Plans €100 Billion Retaliation as Trump’s Deadline Nears

Officials in Brussels are consolidating two earlier tariff lists, combining duties on €21 billion of US products like whiskey and poultry with a €72 billion package targeting automobiles and aircraft. If EU member states approve the proposal in a vote expected this week, the bloc could activate the tariffs by August 7.

Source: Tweet

The European Commission stressed that these measures are meant to mirror Washington’s proposed tariff hike. The first wave of countermeasures would take immediate effect, signaling that the EU is not willing to yield under trade pressure. This move could escalate tensions between both economies and disrupt key transatlantic trade routes.

While discussions continue, the uncertainty has already begun to ripple across global markets especially digital assets.

Crypto Market Today: Mixed Reactions Amid Geopolitical Shifts

The cryptocurrency markets is responding to tariff threats and tense US-EU relations with caution today. Bitcoin was trading above $118,000 and continues to sustain gains regardless of the fluctuations in the macro-economy. Bitcoin had increased by 1% to $118,601 by the time of reporting. Ethereum has experienced a slight decline as it decreased by 0.2 percent to 3,698 dollars.

Investors seem mixed. On the one hand, low-risk demand on Bitcoin has driven the price. Alternative coins, on the other hand, such as Ethereum, Cardano, and Avalanche, were barely able to remain in the positive zone. Nonetheless, BNB was defying the trend by rising by 5% to an all-time high of $804.

The total crypto market capitalization rose by $33 billion in the last 24 hours, amounting to almost $3.9 trillion. According to analysts, the increase has been as a result of innovation in blockchain as well as a response to current political tension around the world. With the increased doubts about international trade, investors might keep looking to decentralized assets.

Ethereum ETFs attracted an inflow of new money of more than 530 million, having a great interest by institutions. In the meantime, Bitcoin dominance continued going down to the seventh day, which is a sign of a capital rotation into the altcoins. The rallies by the altcoins may continue when the markets confidence is maintained.

Crypto Market Price Outlook and Market Sentiment

With crypto market today gaining traction amid geopolitical developments, analysts expect Bitcoin to test the $120,000 resistance again. If trade tensions escalate and tariffs are implemented, safe-haven demand could push Bitcoin toward $125,000.

Altcoins could enjoy capital rotation, particularly those that are favorably regulated and identified by a thriving community. Other tokens such as Pudgy Penguins (PENGU) reached new highs recently indicating the overall excitement.

However, volatility remains high. A breakdown in EU-US trade talks could jolt investor sentiment, dragging down prices. If Trump follows through with the 30% tariff, both traditional and crypto markets may face short-term disruptions.

Nonetheless, there are indicators of strength in the crypto market today, with the market rallying as a strategy to hedge against economic uncertainty globally.