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Highlights
- Bitcoin jumped from $103K to $105K after Trump extended tariff pause to August 31.
- Last 90-day pause in April saw Bitcoin surge from $74.5K to over $111K.
- Ethereum is up 2.67% to $2,606.89 following the latest tariff delay news.
The U.S. government has extended its pause on some tariffs imposed on Chinese goods until August 31, 2025. This move comes during ongoing trade negotiations between the Donald Trump administration and several key global trading partners.
The decision has drawn attention from both traditional financial sectors and cryptocurrency markets, as the delay is expected to influence global market sentiment and investor behavior.
Court Rulings Challenge Trump Tariff Authority
Two federal courts recently ruled that the Trump administration exceeded its legal authority by imposing tariffs under the International Emergency Economic Powers Act (IEEPA). On May 28, the U.S. Court of International Trade ruled against tariffs targeting Chinese, Mexican, and Canadian imports, calling them unjustified under the current law.
A day later, a U.S. District Court in Washington, D.C., issued a separate ruling involving two toy companies, Learning Resources and hand2mind, stating that the companies would suffer harm from the tariffs.
The courts found that IEEPA does not authorize the broad use of tariffs as a tool in domestic or international trade policy. The Donald Trump administration quickly appealed both decisions. In one case, a federal appeals court issued a temporary stay, allowing the tariffs to remain in place during the early stages of the appeal. The administration has now asked the U.S. DC Circuit Court of Appeals to pause the second ruling, citing the risk it poses to ongoing trade talks.
July 8 Deadline Set for Trade Negotiations
Following the legal challenges, the Trump administration announced a firm deadline of July 8, 2025, to finalize major trade deals. President Donald Trump urged foreign governments to present their best offers by the upcoming Wednesday. The White House stated that failure to reach an agreement would result in the reinstatement of paused tariffs once the 36-day window closes.
A spokesperson for the administration said, “The pause is a strategic move. It allows talks to continue without the immediate pressure of penalties, but it is temporary.” The administration maintains that tariffs remain a necessary and credible tool in enforcing fair trade policies, especially in its efforts to pressure foreign countries on issues like drug trafficking and trade balance.
Meanwhile, analysts are closely watching how the courts will respond to the administration’s appeal for a longer stay on the initial rulings. A decision is expected later this month.
Crypto Markets React to Trump Tariff News
The extension of the tariff pause has triggered strong reactions in the cryptocurrency market. Bitcoin, which had already fallen to $103K climbed past $105,000, is showing renewed momentum. Last time, following Trump’s announcement of a 90-day pause back in April, Bitcoin price surged jumping from $74,500 to over $82,000.
Investors viewed the Trump tariff pause as a signal of reduced global trade tension. This shift in sentiment continued through May, with Bitcoin reaching a new high of nearly $112,000.
Other cryptocurrencies also gained, with Ethereum rising over 10% during the same period. Presently, data shows Ethereum price rising by 2.67% to $2,606.89, while XRP and Dogecoin also saw daily gains after the pause to August.
Peter Schiff Express Concern Over Tariffs
While the administration argues that tariffs are a tool for leverage, business groups have raised concerns about their long-term effects.
Critics argue that higher costs on imported goods could disrupt supply chains and increase consumer prices.
Peter Schiff, a financial commentator, stated on X, “These tariffs might benefit steel and aluminum producers now, but they hurt downstream manufacturers. That leads to job losses everywhere.” Many manufacturers rely on imported materials, and increased input costs can reduce their global competitiveness.
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