US-EU trade deal with 15% tariffs on EU exports sparks a crypto rally, with Bitcoin hitting $119K and Ethereum $3,845.
The United States (US) and the European Union (EU) have signed a significant trade agreement in advance of the August 1 tariff deadline, following a tense period of negotiations. The allegations have incited a cryptocurrency market rally, with Bitcoin, Ethereum, and BNB currently experiencing the highest price increases.
United States and European Union Sign New Tariff Agreement
The two nations have executed a framework trade agreement to mitigate the potential for a tariff conflict between the United States and the European Union. The new deal, as reported by Reuters, will involve a 15% tariff on EU exports entering the United States, in exchange for Europe’s commitment to purchasing US energy and military hardware.
To resolve the nuances of the agreement, US President Donald Trump convened a meeting with European Commission President Ursula von der Leyen in Scotland. The EU will now be able to avoid paying a 30% tariff on exports to the US in advance of the impending August 1 deadline set by Trump, under the new agreement.
Von der Leyen had previously committed to engaging in negotiations with the United States, following Trump’s imposition of 30% tariffs on the EU due to trade deficits in critical sectors. Nevertheless, the 15% tariff is regarded as a subpar result in the negotiation process, as certain EU members are yearning for a zero-for-zero tariff agreement.
“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.”
US-EU Trade Agreement Leads to Cryptocurrency Price Increase
CoinMarketCap data showed that the Bitcoin price increased by nearly 1% in the minutes following the announcement, thereby securing its position at $119,000. Reports of a 90-day trade truce between the United States and China prompted Bitcoin to surge to the $119,000 price threshold early in the day.
At the same time, Ethereum, the second-largest cryptocurrency, experienced a nearly 3% increase in the past day, reaching $3,845. Other altcoins participated in the broader crypto market rally, with BNB reaching a new all-time high of $827 by ascending 5.64%.
At the time of publication, the global crypto market capitalization is $3.93 trillion, with daily trading volumes of $133.54 billion, a 3% increase from the previous day. The Bitcoin price experienced a surge in the early part of the week in response to previous reports of an imminent trade agreement between the EU and the US.
