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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Related Questions

QWhat is the new tariff rate imposed by US President Donald Trump and who does it target?

AUS President Donald Trump has imposed a new 25% tariff on countries doing business with Iran, effective immediately. It applies to any and all business being done with the US.

QWhat potential impact could this tariff have on the crypto market according to the article?

AThe article suggests the tariff could make investors more cautious, as tariffs often make international trade expensive and trigger inflation. This could lead the US Federal Reserve to not cut rates, resulting in high volatility in the crypto market.

QHow did the global crypto market cap and specific major cryptocurrencies perform at the time the article was written?

AThe global crypto market cap had plunged by 0.02% to $3.13 trillion. ETH was down 0.55%, SOL was down 1.23%, and while BTC had gained 0.43% in 24 hours, it was still down 1.48% over the previous 7 days.

QWhat other recent policy action did Trump take that is mentioned in the article, and when is it set to go into effect?

ADays before the tariff announcement, Trump announced a one-year cap on credit card interest rates to 10%. This proposal is scheduled to go into effect on January 20, 2026.

QWhich countries are mentioned as being potentially hindered by the new 25% tariff rate?

AThe article states that the new tariff could hinder international trade with several nations, specifically naming China, India, Germany, the UAE, and the European Union.

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