U.S. To Raise EU Auto Tariffs To 25%

U.S. President Donald Trump has announced new tariffs on the European Union (EU), which would take effect next week. Bitcoin briefly retraced on the back of the announcement of the latest Trump tariffs, although the leading crypto is still up on the day amid optimism of renewed talks between the U.S. and Iran.

New Trump Tariffs Against To Take Effect Next Week

In a Truth Social post, the U.S. president announced that he will increase tariffs on cars and trucks from the EU to 25% starting next week due to the EU’s failure to comply with the trade deal it agreed to with the U.S. He noted that there will be no tariff if the EU produces its cars and trucks in the U.S.

These Trump tariffs threaten to escalate tensions in the market, especially given the impact they have had on crypto prices in the past. Bitcoin briefly retraced on the back of the president’s announcement, dropping to the lower $78,000.

As CoinGape reported, Bitcoin rallied above $78,000 earlier today on optimism about ongoing negotiations between the U.S. and Iran to end the war. Iran sent a new proposal to the U.S. through Pakistani mediators after Trump rejected an earlier offer this week.

As with the U.S.-Iran war, imminent Trump tariffs could have a significant impact on the market, especially if they lead to another trade war between the U.S. and Iran. It is also worth noting that the U.S. has continued to explore ways to implement Trump’s reciprocal tariffs after the Supreme Court struck down some of these tariffs in February.

U.S. President Comments On Talks With Iran

Amid the announcement of the latest Trump tariffs, the U.S. president also confirmed to reporters that the U.S. was in communication with Iran. However, he stated that he is not satisfied with the latest proposal and is unsure whether they will be able to reach a deal.

Meanwhile, he reiterated that the Strait of Hormuz remains 100% shut down with the U.S. blockade. The U.S. president added that the current options on Iran are that the U.S. either strikes them or they make a deal.

Trump also commented on the rising oil prices, which continue to put downward pressure on the crypto market and other global markets. He stated that oil and gas will come down once the U.S.-Iran war ends.