U.S. President Donald Trump announced an immediate increase in the global tariff rate from 10% to 15%. This move comes as Trump explores alternative legal avenues for imposing tariffs, following a Supreme Court decision that limited his authority under the International Emergency Economic Powers Act.
Trump stated on his social media platform that the higher tariff rate is "fully allowed, and legally tested." He is leveraging statutes such as the Trade Expansion Act of 1962 and the Trade Act of 1974. However, legal experts suggest these laws may also impose limitations on the duration and scope of such tariffs.
Historically, Trump's tariff announcements have triggered volatility in financial markets, including significant downturns in crypto and stock prices. This uncertainty has often impacted asset values and investor confidence.
In contrast to past reactions, cryptocurrency markets remained remarkably stable following the latest tariff announcements. Bitcoin's price held steady around the $68,000 mark, and Ether also showed minimal change. The broader crypto market capitalization, excluding Bitcoin and Ether, experienced a slight decline of less than 1%.