Trump’s New Tariffs on Mexico and EU Trigger Cryptocurrency Market Dip
Cryptocurrency Market Reacts to Trump’s Tariff Announcement
Market Overview: A Slight Decline in Major Cryptocurrencies
On July 13, 2025, the cryptocurrency landscape experienced a minor downturn following U.S. President Donald Trump’s announcement of a 30% tariff on imports from Mexico and the European Union, set to take effect on August 1. This news, shared through Trump’s Truth Social platform, led to moderate declines in several major cryptocurrencies, with the notable exception of XRP.
Bitcoin and Major Altcoins Experience Losses
Bitcoin (BTC), the leading cryptocurrency by market capitalization, was trading at $117,259.10 after the announcement, reflecting a 0.6% decrease from its previous high of $118,200. Similarly, Ether (ETH) fell by 1%, settling at $2,930. Other cryptocurrencies, including Solana’s SOL and Dogecoin (DOGE), experienced declines exceeding 2%, while Binance Coin (BNB) recorded a loss of 0.7%.
XRP Stands Out Amidst Market Weakness
In contrast to the broader market trends, Ripple’s XRP showed remarkable strength, gaining 1.78% and distinguishing itself as one of the few cryptocurrencies to maintain its value during this market dip.
Trump’s Justification for Tariffs
President Trump justified the tariffs on Mexico and the EU by citing inadequate cooperation from Mexico regarding border security and an “unbalanced” trade relationship with the EU. In a letter addressed to Mexican President Claudia Sheinbaum, Trump remarked, “Mexico has made some efforts to secure the border, but it falls short.” He also criticized the EU in a separate correspondence with European Commission President Ursula von der Leyen, expressing dissatisfaction with the lack of a reciprocal trade relationship. Earlier in the week, Trump had already imposed tariffs on various countries, including South Korea, Japan, Canada, and Brazil, alongside a hefty 50% tariff on copper imports, which caused significant fluctuations in the commodities market, particularly affecting copper prices.
Market Sentiment: A Phase of Indecision
Despite a bullish trend earlier in the week that saw Bitcoin surpass the $110,000 mark for the first time in months, the market now appears to be in a state of uncertainty. Analysts anticipate tight trading ranges over the weekend, with the potential for renewed buying activity as Asian markets open late Sunday.
Future Predictions: Anticipating Market Movements
“Expectations are for a volatile weekend. However, as Asia enters the market late Sunday, we could see a surge in Bitcoin purchases, potentially pushing us past the $120,000 threshold,” speculated the LondonCryptoClub newsletter on X (formerly Twitter).
This evolving situation highlights the interconnectedness of global economic policies and the cryptocurrency market, underscoring the need for investors to remain vigilant.
