U.S. President Donald Trump Increases Global Tariff to 15% – Crypto Markets Stay Resilient
Washington, D.C., Feb. 22 (Cointelegraph) – President Donald Trump announced a rise in the United States’ supplemental global tariff from 10% to 15% on Saturday. The adjustment, which took effect immediately, is being applied under the Trade Expansion Act of 1962 and the Trade Act of 1974 after the Supreme Court’s recent ruling limited his authority to impose tariffs through the International Emergency Economic Powers Act (IEEPA).
Background
Last Friday, the White House introduced a 10% additional tariff on a broad group of trading partners, stacking it on top of existing duties that survived the Supreme Court’s decision to strike down Trump’s earlier IEEPA‑based plan. In a post on his Truth Social account, the president framed the increase as a response to what he described as longstanding “unfair” trade practices that have cost the United States billions of dollars.
Legal experts note that the statutes being invoked place clear limits on the scope and duration of such measures. According to crypto‑focused attorney Adam Cochran, the Trade Expansion Act and the 1974 Trade Act only permit tariffs on countries with which the United States runs a trade deficit, for a maximum period of 150 days, and at a capped rate.
Market Reaction
Historically, announcements of new U.S. tariffs have triggered sharp sell‑offs across both equities and digital assets. This time, however, the cryptocurrency market showed surprising composure:
- Bitcoin (BTC) remained anchored around the $68,000 mark, with price fluctuations staying within a narrow band since the tariff news broke.
- Ethereum (ETH) exhibited a similarly muted response, posting only marginal moves.
- The broader crypto market index (Total3), which excludes the two largest coins, slipped less than 1% and hovered near a $713 billion market‑cap.
The relative stability contrasts with the volatility observed after the previous week’s tariff announcement, when both crypto and stock indices posted significant declines.
Analysis
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Legal Constraints May Temper Investor Fear
The reliance on older trade statutes, which prescribe clear limits, appears to have reassured some market participants that the tariff hike is not an open‑ended escalation. The 150‑day ceiling and the deficit‑only condition reduce the likelihood of a prolonged, expansive trade war. -
Crypto Resilience Amid Macro Uncertainty
The near‑flat performance of Bitcoin and Ethereum suggests that digital assets are beginning to decouple, at least partially, from traditional trade‑related risk factors. While the sector still reacts to macro news, the current episode indicates a growing maturity and ability to absorb policy shocks. -
Potential Impact on Trade‑Sensitive Cryptos
Projects that depend heavily on cross‑border supply chains—such as hardware manufacturers, mining operations, and certain DeFi protocols—may still feel indirect pressure from higher import costs. Nevertheless, the immediate price action does not reflect widespread concern. - Political Narrative vs. Economic Reality
President Trump’s framing of the tariff increase as a “retaliation” against countries that have “ripped off” the U.S. aligns with his broader trade agenda. However, the modest size of the hike (an additional 5 percentage points) and its limited legal basis suggest that the move is more symbolic than a decisive shift in trade policy.
Key Takeaways
- Tariff Increase: The United States raised its supplementary global tariff from 10% to 15% under the Trade Expansion Act of 1962 and the Trade Act of 1974.
- Legal Limits: The statutes constrain the tariff’s applicability to deficit‑running nations, cap the rate, and set a 150‑day maximum duration.
- Crypto Market Reaction: Bitcoin and Ethereum held steady around $68,000 and $X,XXX respectively; the overall crypto market fell less than 1%, indicating resilience.
- Investor Sentiment: The clear legal parameters appear to have muted concerns that the tariff hike would trigger a broader, prolonged trade conflict.
- Future Outlook: While the immediate impact on crypto prices is limited, ongoing trade developments and any extensions of the tariff regime could affect sectors reliant on international supply chains.
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Source: https://cointelegraph.com/news/trump-raises-tariff-15-crypto-unfazed?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
