On July 10, 2025, US President Donald Trump announced new tariffs on Iraq and Libya, impacting international markets.
Announcement of Tariffs on Iraq and Libya
The United States has imposed tariffs on Iraq and Libya, as declared by President Trump. This decision signals a shift in US trade policy and prompts significant market responses, particularly in the cryptocurrency sector.
Market Reaction to Tariffs
Bitcoin and Ethereum fell by over 2% following the announcement, illustrating the intertwined nature of crypto with traditional financial markets. Markets responded with a risk-off sentiment, evidenced by a decline in the S&P 500 and significant drops in major cryptocurrencies.
Future Volatility and Forecasts
As bilateral agreements are anticipated, if not reached by August 1, further market volatility is expected, as tariffs could rise up to 70%. Trump noted that absent deals or further extensions, steep tariffs would automatically take effect.
The new US trade policy increases investor concerns about potential financial repercussions amid uncertainty, which may continue to exert pressure on both traditional and cryptocurrency markets.
