U.S. President Donald Trump announced new tariffs on pharmaceuticals and semiconductor chips on Tuesday morning during a CNBC interview.
Bitcoin Drops Below $113K After Trump Announces New Tariffs
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Trump Tariff Threat Shakes Crypto: Bitcoin Drops Below $113K
Crypto and stock markets edged lower on Tuesday morning, with bitcoin ( BTC) dropping below $113K after U.S. President Donald Trump told CNBC that his administration will be announcing new tariffs “within the next week or so.” Crypto markets fell 1.82% and the S&P 500, Nasdaq, and Dow all lost 0.28%, 0.36%, and 0.03% respectively.
Trump said the new tariffs would cover items that currently exist in “excluded classes” such as pharmaceuticals and semiconductor chips. The president explained that a “small” initial tariff would be applied to pharmaceuticals, but it would be gradually ramped up to 250% over several years.
The Trump administration’s trade policy has defied expert predictions of runaway inflation and rampant unemployment. But Friday’s disappointing jobs report revived fears of a tariff-induced economic slowdown.
“Within the next week or so, we’re going to be announcing tariffs,” Trump said. “We’re going to be announcing on semiconductors and chips, which is a separate category, because we want them made in the United States.”
Overview of Market Metrics
Bitcoin was priced at $113,173.29 at the time of reporting, lower by 1.78% over 24 hours, based on Coinmarketcap data. The cryptocurrency’s weekly performance was even worse, shedding 3.93% over the last seven days. Volatility appeared moderate as BTC’s price hovered between $112,701.11 and $115,729.47.
Trading volume for the day climbed 10.52% to $59.43 billion since Monday and market capitalization tumbled 2.08% to $2.25 trillion at the time of writing. Bitcoin dominance inched up 48% over 24 hours and stood at 61.72%, hinting at the fact that BTC’s price drop was less severe than losses seen in the broader crypto market.
Total BTC futures open interest was down slightly over 24 hours, dipping 0.15% to $80 billion. Bitcoin liquidations stood at $54.28 million in total, comprising $48.68 million in long liquidations, with the remaining $5.6 million in shorts.
