Trump's tariff war escalates and severely impacts the crypto market! Tariffs imposed on 60 countries including China, Canada, and Mexico lead to nearly 600 million Get Liquidated.

The Trump administration announced significant tariff increases (ranging from 10% to 50%) on over 60 countries worldwide, including Canada, Mexico, and China, raising concerns about a full-blown trade war. In response, the crypto assets market plummeted, with over $570 million in liquidations across the network within 24 hours, devastating long positions. Ethereum and Bitcoin recorded liquidations of $169 million and $144 million in long positions, respectively. Panic spread throughout the market, inflation expectations heated up, and investors urgently sold off crypto assets to hedge.

Trump's tariff war sweeps the globe, Crypto Assets market responds with a big dump

The Crypto Assets market is experiencing severe volatility, triggered by President Trump’s extensive tax policies imposed on major trading partners such as Canada, Mexico, and China. Under the shadow of Trump's escalating tariff war, the crypto market has suffered a significant setback, with the amount of long positions getting liquidated soaring to over $570 million.

Trade War Escalates: 60 Countries Face Tariffs, With Rates Up to 50%

According to the latest report from The New York Times, the Trump administration has announced new tariffs on over 60 countries, with rates ranging from 10% to 50%, effective August 7. The U.S. government revealed:

• Countries with a trade surplus with the U.S.: A "base" tariff of 10% will be maintained.
• Countries with a trade deficit against the U.S.: Will face at least a 15% tariff. Currently, negotiations with China and Mexico are still ongoing.

It is noteworthy that, starting from August 1st, Canada is facing higher tax rates on certain exported goods. According to reports, Trump has raised the tax rate for the country to 35%. However, goods traded under the renegotiated United States-Mexico-Canada Agreement (USMCA) are exempt from this, and these exempt goods account for the vast majority of U.S. imports from Canada. Drew Fagan, a professor at the Munk School of Global Affairs at the University of Toronto, pointed out that "the majority of trade between Canada and the United States, primarily in goods produced in both countries, remains tariff-free."

The complex tariff system implemented by the United States globally has provoked strong reactions from trade ministers of various countries. For example, New Zealand's Trade Minister Tom McClay, facing a 15% tariff, believes that Trump's tariff policy is baseless (with neighboring Australia having a rate of 10%). McClay stated: "We do not believe this is a good thing, we do not think it is reasonable, and it is detrimental to trade."

Notably, Southeast Asian countries face some of the highest tax rates: Syria is taxed at 41%, while Laos and Myanmar are at 40%. Although the tax rates in Cambodia, Vietnam, Indonesia, Malaysia, and Thailand have been significantly reduced to 19% or 20%, they are still higher than those in other countries. Pakistan has become the country with the lowest tax rates in South Asia, with its trade tax reduced from 29% to 19%. Pakistan's finance minister specifically pointed out: "This agreement marks the beginning of a new era of economic cooperation, particularly in the fields of energy, minerals, IT, encryption, and others." The relevance of cryptocurrency tariff policies has attracted market attention.

Crypto market flash crash: Over 570 million Get Liquidated, Bitcoin and Ethereum lead the fall

Under the pressure of the U.S. imposing high tariffs on multiple countries globally, the crypto assets market is experiencing severe turbulence. Trump's tariff policy has triggered inflation concerns and market panic, leading to a massive dumping, with the crypto market value rapidly evaporating. The escalation of the trade war has left investors on edge.

The crypto assets market has seen a significant fall, with long positions getting liquidated amounting to 577 million USD in the past 24 hours, and 13 million USD liquidated in just the last 4 hours. This crypto assets liquidation storm has severely impacted mainstream coins:

• Ethereum (ETH): Long positions Get Liquidated losses reached $168.9 million, leading the decline among mainstream coins.
• Bitcoin (BTC): Long positions Get Liquidated amount to $144 million. The market leverage liquidation risk has surged sharply, and investor confidence has been undermined.

Conclusion: The Trump administration's sudden imposition of tariffs has plunged major global economies into a trade war, becoming a key macroeconomic negative for the crypto market. The staggering $570 million in liquidation data highlights market panic selling and high leverage risks. In the short term, the crypto market trend will continue to be influenced by the direction of Trump's tariff policy, the escalation of global trade frictions, and inflation expectations. Investors need to closely monitor trade negotiation progress, macroeconomic data, and changes in market liquidity, strictly managing positions during the big dump in crypto assets, and remain vigilant against the continuation risk of crypto leverage liquidations. During periods of heightened market volatility, risk-averse strategies and risk management are crucial.