Trump Tightens Tariffs for Brazil: Crypto Market Reacts
Date: 2025-07-10 Author: Oliver Abernathy Categories: IN WORLD
The new tariff, announced by Trump in an official letter to Brazilian President Luiz Inacio Lula da Silva, will go into effect on August 1. In the letter, Trump accused Brazil of "unfair trade practices" and spoke harshly about the actions of the Brazilian Supreme Court, which is investigating former President Jair Bolsonaro. Recall that Bolsonaro is accused of organizing an attempted anti-democratic coup, which resulted in an attack on the Planalto Palace in January of this year.
The conflict between Washington and Brasilia escalated earlier this week after Donald Trump openly expressed support for Bolsonaro and criticized the BRICS summit. The American president made it clear that any countries that side with the "anti-American BRICS line" could face additional duties of 10%.
This news immediately affected the Bitcoin rate. After the BTC rate rose to a new historical maximum of $112,000, the market responded with a decline: the price fell to $110,800. Investors became more cautious, because earlier the growth of the cryptocurrency market was fueled by hopes for a reduction in the Federal Reserve interest rate, and now its mood is restrained by geopolitical tensions.
Financial analysts emphasize that the cryptocurrency market is sensitive to any signs of instability. The aggravation of relations between the United States and Brazil adds uncertainty that can affect the dynamics of Bitcoin and other digital assets. Many market participants are now monitoring not only the actions of the Fed, but also Trump's statements on foreign trade and possible new restrictions for the BRICS countries.
At the same time, Bitcoin supporters note that in the long term, such political conflicts can only strengthen the attractiveness of cryptocurrencies as a hedging tool against global risks and currency fluctuations. However, the short-term reaction shows that even the most stable assets are vulnerable to unexpected political statements.
The market is now waiting to see whether new tariff measures will follow and how Brazil will react to them. Any steps by Lula da Silva and possible counter-sanctions could become the next driver for changes in cryptocurrency prices. In the meantime, investors are preparing for volatility and closely watching the rhetoric of the White House.
The situation shows that cryptocurrencies, despite their decentralized nature, are closely linked to world politics. And every new tweet from Donald Trump can change the mood of the markets faster than economic statistics or central bank decisions.
