NewsBTC

Nov 17, 2025

8 0

Trump Backs 500% Tariff Proposal, Crypto Market Sees Major Liquidations

US President Trump supported a Senate proposal allowing the US to impose tariffs up to 500% on imports from countries buying Russian energy, like India and China. The bill aims to reduce Russia's export revenues but is still in the proposal stage.

Key Points of the Proposal

• The bill targets oil, natural gas, petroleum products, and uranium.
• It gives the President the authority to impose punitive duties on countries trading with Russia.
• Lawmakers are finalizing details regarding goods and exceptions.
• Legal experts suggest potential trade rule conflicts and retaliation risks.

Impact on Crypto Markets

• Crypto traders reacted quickly, causing increased volatility.
• Approximately $620 million in crypto positions were liquidated within 24 hours.
• Major cryptocurrencies like Bitcoin, XRP, Solana, and Cardano experienced sharp price swings.
• Ethereum dropped toward $3,000, while Bitcoin fell by 1% after the news.
• Analysts warn potential 10%-20% price drops if tariffs are implemented due to economic uncertainty.

Wider Economic Effects

• Possible disruptions in energy flows could increase crude and gas prices, affecting inflation.
• Central banks may keep interest rates higher for longer, impacting risk assets like cryptocurrencies.
• Historically, new price regimes can lead people to seek alternatives, making crypto markets sensitive to such proposals.