Bitcoin, Ether Tentative, XRP Steady as Trump Announces 30% Tariff on EU and Mexico
July 12, 2025 – By Omkar Godbole
Major cryptocurrencies displayed tentative trading behaviors following President Donald Trump’s announcement of a 30% tariff on imports from the European Union (EU) and Mexico, effective August 1. This move escalates trade tensions and reverberated through the crypto market, impacting prices and sentiment.
Trump’s Tariff Announcement and Market Impact
On July 12, President Trump announced via letters posted on his Truth Social account that the United States will impose a 30% levy on goods imported from Mexico and the EU starting next month. Trump cited concerns over border security and the perceived imbalance in trade reciprocity with these partners. He wrote to Mexican President Claudia Sheinbaum, stating, “Mexico has been helping me secure the border. BUT, what Mexico has done, is not enough.” Similarly, in his letter to European Commission President Ursula von der Leyen, Trump described the U.S.-EU relationship as “far from reciprocal.”
This announcement came on the heels of new tariffs earlier in the week targeting other countries such as South Korea, Japan, Canada, and Brazil, including a 50% tariff on copper, which spurred volatility in respective markets.
Cryptocurrency Market Reaction
Following the news, major cryptocurrencies experienced moderate declines, reflecting investors’ cautious stance amid rising geopolitical tensions.
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Bitcoin (BTC), the leading cryptocurrency by market capitalization, traded around $117,400 as of the latest update, down approximately 0.6% from an earlier European session high near $118,200. Despite bullish momentum earlier in the week that saw BTC surpass the longstanding $110,000 resistance, prices struggled to maintain levels above $118,000. – Ether (ETH), the second-largest cryptocurrency, saw a 1% decrease, trading at roughly $2,930. Its recent price action included an indecisive doji candle, signaling market uncertainty.
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Other top tokens, including Solana (SOL) and Dogecoin (DOGE), also dipped by over 2%, while Binance Coin (BNB) decreased by 0.7%.
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Notably, XRP displayed resilience, gaining approximately 1.78% despite the broader market softness.
Additional altcoins showed mixed movements: Cardano (ADA) rose 3.25%, Stellar (XLM) surged by 17.54%, and Hedera (HBAR) climbed 15.97%, indicating selective strength in the market.
Market Commentary and Outlook
The modest pullback followed strong bullish momentum earlier in the week, prompting some analysts to anticipate a period of consolidation over the weekend before potential renewed gains. The newsletter LondonCryptoClub expressed expectations of sideways trading within a tight range through the weekend, with Asian markets potentially driving Bitcoin above $120,000 late Sunday evening.
Summary of Major Cryptocurrency Prices (as of July 12, 2025)
| Cryptocurrency | Price (USD) | Change |
|---|---|---|
| Bitcoin (BTC) | $117,826.20 | -0.05% |
| Ether (ETH) | $2,958.49 | -0.25% |
| XRP | $2.7992 | +0.64% |
| Binance Coin (BNB) | $690.52 | -0.21% |
| Solana (SOL) | $162.34 | -0.13% |
| Dogecoin (DOGE) | $0.1986 | -0.77% |
| Cardano (ADA) | $0.7409 | +3.25% |
| Stellar (XLM) | $0.4440 | +17.54% |
Conclusion
The announcement of a substantial 30% tariff on the EU and Mexico impacted major cryptocurrencies, with Bitcoin and Ether edging lower while XRP remained steady. Investors continue to weigh inflation risks, geopolitical tensions, and regulatory developments as they navigate the crypto markets.
Omkar Godbole is a Co-Managing Editor on CoinDesk’s Markets team based in Mumbai. He holds a master’s degree in Finance and is a Chartered Market Technician (CMT) member. He has previous experience at FXStreet and various brokerage houses.
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