At the beginning of last month, Trump announced significant tariffs on what he dubbed “Salvation Day” on April 2.
Expectations were already high, but the announced tariff rates surpassed them, impacting the markets negatively with rapid declines. Subsequently, a decision was made to delay for 90 days and reduce tariffs to a global scale of 10%.
US-UK Trade Agreement Effects
This week, an agreement with a major country was expected to be signed, and statements supported this anticipation. Due to conflicts, India could not complete the process, so the UK agreement was brought forward. This agreement is significant for several reasons;
According to The Telegraph, the agreement is finalized, with tariffs on Range Rovers and other UK-made cars reduced and fixed at 10%. In the coming months, a more comprehensive agreement is planned. The current agreement is a step taken to prevent economic damage during a 12-month interim period.
In return, the US requested nearly zero tariffs on beef imports and exports between the two countries, although hormone-treated beef will not be allowed in the UK. The tariff rates for the UK’s steel exports are to be reduced under the agreement, although specific rates have yet to be determined.
Officials from the UK stated that Trump and Starmer had a very cordial meeting and would talk again later today. Government sources confirmed that a formal announcement would be made later today.
Impact on Cryptocurrencies
Initially, there will be stronger belief that agreements with countries other than China could be completed by July. This step confirms that Trump has no intention of completely isolating the country, showing the real impacts of tariffs. With new agreements focusing on mutual compromises aligning with US interests, a rise in cryptocurrencies is not unexpected.
Trump demonstrated that he could reduce rates by increasing more imports, with the EU open to additional imports exceeding 100 billion dollars, making refusal apparent. Japan, with historical ties and economic situations, also views an agreement favorably. An agreement with India is nearly complete.
When all is set aside, only China remains, with negotiations starting on Saturday. Abolishing mutually detrimental tariffs is unavoidable despite threats and high-level proclamations. The UK’s agreement undermines the anti-US China bloc narratives, pushing China towards an agreement.
For cryptocurrencies, unless a “sell and take a holiday” mode arises, rises may begin.
Ukraine Pact
As the article concludes, Trump declared the signing of a mineral agreement with Ukraine, and ETH surpassed 2,000 dollars as BTC returned to 99,800 dollars.
Trump stated while preparing the article;
“Today is a very special day. An extraordinary deal for both nations. Just signed the rare lands agreement with Ukraine, meeting with Zelensky soon. Reached a groundbreaking deal with the UK. The United Kingdom is one of our dearest allies. The UK will expedite US goods through customs, business will progress swiftly in both directions. We will provide new market access for US chemicals and machinery. Many scheduled meetings await, every country desires an agreement. The US Treasury Secretary Bessent’s meeting with China will be intriguing.”
