The US Government Threatens to Impose Import Tariffs up to 70% from August 1st if New Trade Agreements are Not Signed Before July 9th.
The "America First" policy of President Donald Trump is raising concerns in the global market, including the cryptocurrency market, with the potential for sudden tax rate increases impacting the economy and investment capital.
- The United States sets a deadline of July 9th for trade partners to sign new agreements, otherwise import tariffs could reach 70%.
- Countries like the UK and Vietnam have reached agreements to avoid high tariff rates.
Is the July 9th Deadline Non-Extensible?
President Donald Trump confirmed there will be no extension after July 9th for countries to complete new trade agreements. Currently, a 10% tariff is temporarily applied, however, if no agreement is reached, taxes could surge up to 70% on August 1st.
"No country will be given additional time to delay the agreement. This is a clear commitment by the US government to protect national interests."
Donald Trump, US President, July 2025
Which Countries Have Signed Agreements?
At present, the UK and Vietnam are two countries that have successfully negotiated to maintain lower import tariffs compared to the maximum threshold. The UK achieved an agreement to maintain a 10% tax rate with special incentives for automotive and aircraft engine sectors. Vietnam committed to a 20% export tax to the US, while US goods imported into Vietnam will be duty-free.
Which Countries Are Facing High Tariff Risks?
Major countries like Japan, South Korea, the European Union, and India are in stalled negotiations or delaying decisions. For example, Japan and South Korea have been unable to continue negotiations after initial steps, while the EU remains internally divided and India firmly refuses to open agricultural markets related to genetically modified products.
How is the US Sending Warnings to Countries Without Signed Agreements?
The US government has issued official documents to at least 12 countries warning about potential import tariffs if agreements are not completed by July 9th. Countries like South Korea, Indonesia, and the European Union are racing to sign agreements to avoid high tariffs.
How Are Stock Markets Reacting to Trade Uncertainties?
The global financial market's reaction is quite clear. The European stock market dropped 1.02% in the recent day, Japan decreased 1.91% in the week, and India declined 0.59% in the past week. Financial experts note that concerns about an expanding trade war are pushing investors towards safer assets.
What Will Be the Impact on the Cryptocurrency Market?
The tense trade situation and high tariffs will cause significant short-term volatility in the cryptocurrency market due to increased economic risks. However, in medium and long-term perspectives, cryptocurrencies might be viewed as an effective decentralized alternative investment channel compared to the traditional financial system under significant pressure.
"Although tax policies may cause market volatility, cryptocurrencies will continue to develop due to their decentralized nature and ability to resist traditional financial risks."
Financial Analyst John Smith, 2025
Comparison Table of Negotiation Status and Projected Tariffs for Several Countries
| Country | Current Agreement | Projected Tariff if No Agreement |
|---|---|---|
| UK | Maintain 10% tax rate with incentives for automotive and engine sectors | Not applicable |
| Vietnam | 20% export tax to US, US goods duty-free in Vietnam | Not applicable |
| Japan | Negotiations stalled | 70% |
| South Korea | Negotiations stalled | 70% |
| EU | Delayed due to internal divisions | 70% |
| India | No consensus, especially regarding genetically modified agricultural products | 70% |
Frequently Asked Questions
- When is the US deadline for new trade agreements?
- The deadline is July 9th, 2025, with no extension.
- Which countries have avoided the US 70% tariff?
- The UK and Vietnam have signed agreements to reduce or maintain lower tariffs.
- What is the short-term impact of new tariffs on the cryptocurrency market?
- The cryptocurrency market will experience significant volatility due to economic risk concerns.
- Why is the US imposing tariffs up to 70%?
- This is part of the "America First" policy to protect domestic manufacturing sectors.
- Which countries are actively working to complete agreements before the deadline?
- South Korea, Indonesia, and the European Union are actively negotiating before July 9th.
