US President Donald Trump Imposes 25% Tariff on Iran-Linked Trade, Will Crypto Market Feel the Pinch?

TheNewsCryptoPublished on 2026-01-13Last updated on 2026-01-13

Abstract

US President Donald Trump has announced an immediate 25% tariff on all trade with countries doing business with Iran, calling the order final. This follows his recent approval of a bipartisan sanctions bill imposing a 500% tariff on nations purchasing Russian energy products. The move may hinder international trade, with China, India, Germany, the UAE, and the EU likely impacted. China has already opposed the measure as coercive. For the crypto market, the tariffs could increase trade costs and inflation, potentially preventing the Federal Reserve from cutting rates and sustaining market volatility. The global crypto market cap has dipped slightly to $3.13 trillion, with tokens like ETH and SOL seeing declines, while BTC posted minor gains. Investors are advised to remain cautious amid ongoing uncertainty.

US President Donald Trump has introduced a new tariff rate of 25%. Effective immediately, it comes days after he green-signaled a bipartisan sanctions bill. It remains to be seen if the move affects the global crypto market as investors stay on the lookout for volatility.

US President Donald Trump and New Tariff Rate

US President Donald Trump, via a post, announced a 25% tariff for countries doing business with Iran. He underlined that the tariff is effective immediately, adding that it applies to any and all business being done with the US. Trump’s post, which has drawn attention from different sectors, called this order final and conclusive.

The move comes days after Trump announced a one year cap on credit card interest rate to 10%. The proposal is scheduled to go into effect on January 20, 2026. If so, then it is estimated to lower interest rates significantly from 20-30%.

Impact of New Tariff Rate

The new tariff rate could hinder international trade with several countries, like China, India, and Germany. China, for now, has expressed its opposition to the application of a 25% tariff by calling it a coercive and ineffective move. Other countries that are likely to be impacted are the UAE and the European Union.

For the crypto market, investors could become more cautious before making any investment. The imposition of tariffs is often associated with making international trade expensive – thereby triggering inflation within the country. If so, then the US Federal Reserve may not cut rates, and the crypto market may remain highly volatile.

Crypto Market at the Moment

A 25% tariff comes days after US President Donald Trump approved a bipartisan sanctions bill. It essentially imposes a 500% tariff on countries that buy Russian energy products like oil. The crypto market has been on edge since then, with effects being evident while the article is being drafted.

The global crypto market cap has plunged by 0.02% to $3.13 trillion, with many top tokens seeing a drop in their respective values. For instance, ETH is down by 0.55% over the last 24 hours, and so is SOL by 1.23%. While BTC has gained 0.43% during this timeline, it remains down by 1.48% in the last 7 days.

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