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Highlights
- Both the US and the EU have reached a middle ground on negotiations involving tariffs.
- US will impose a 15% tariff on European exports across the board.
- Cryptocurrency prices have jumped in the minutes following the announcements.
After a nervy period of negotiations, the United States (US) and the European Union (EU) have inked a major trade deal ahead of the August 1 tariff deadline. The reports have triggered a rally in the crypto market with Bitcoin, Ethereum, and BNB leading the price spike.
US, EU Pen Fresh Tariff Deal
The US and the EU have inked a framework trade deal to simmer down tensions of a looming tariff war between the allies. According to a Reuters report, the new arrangement will include a 15% tariff on EU exports entering the US while Europe pledges to purchase US energy and military hardware.
US President Donald Trump met with European Commission President Ursula von der Leyen in Scotland to iron out the finer details of the deal. The new deal means the EU will now avoid paying a 30% tariff on exports to the US ahead of Trump’s looming August 1 deadline.
Previously, Trump slapped 30% tariffs on the EU over trade deficits in key sectors, with von der Leyen pledging to negotiate with the US. However, the 15% tariff is considered a poor outcome in the negotiation process with some EU members pining for a zero-for-zero tariff deal.
“The European Union is going to agree to purchase for the United States $750 billion worth of energy,” remarked Trump on the new deal. “They are going to invest into the United States $600 billion more than they’re investing already.”
Crypto Prices Spike Following US-EU Trade Deal
In the minutes following the announcement, CoinMarketCap data indicated that the Bitcoin price climbed by nearly 1% to solidify its grip on $119,000. Early in the day, Bitcoin surged to the $119,000 price point amid reports of a 90-day US-China trade truce.
Meanwhile, the second-largest cryptocurrency, Ethereum, rose to reach $3,845 in a near-3% surge over the last day. Other altcoins joined in the broad crypto market rally with BNB climbing 5.64% to set a new all-time high of $827.
At press time, the global crypto market capitalization is at $3.93 trillion, while daily trading volumes are $133.54 billion, a 3% spike over the last day. Previous reports of an imminent trade deal between the EU and the US sent the Bitcoin price rallying early in the week.
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