U.S. President Donald Trump announced new tariffs on pharmaceuticals and semiconductor chips on Tuesday morning during a CNBC interview.
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.
(BTC price/ Trading View)
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.
(BTC dominance / Trading View)
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.