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Trump Sets 15% Tariff Floor for EU Imports
As global trade dynamics shift under increasing geopolitical strain, President Donald Trump has drawn a hard red line in upcoming negotiations with the European Union. No EU exports will face tariffs lower than 15%, a move that could have significant ripple effects across strategic sectors including digital technology, pharmaceuticals, and blockchain infrastructure.
Key Points:
- Trump: “No customs duty below 15%” for EU exports to the U.S.
- Announcement comes ahead of high-stakes meeting with EU Commission President Ursula von der Leyen in Scotland.
- Pharmaceuticals explicitly excluded from upcoming trade agreement.
- August 1st set as the firm negotiation deadline for both sides.
Trump Signals End of Trade Flexibility
In a statement delivered on Sunday, July 27, Trump firmly rejected any preferential treatment for EU goods. Framing the decision as a matter of economic sovereignty, he described the upcoming deal as “very powerful, very large, the biggest of all agreements”—but only on U.S. terms.
“The EU will not benefit from customs duties below 15%,” Trump declared, in what many analysts interpret as an attempt to force the EU into a take-it-or-leave-it position.
The tariff proposal marks a decisive shift from past U.S. administrations’ more collaborative trade frameworks. Instead, it signals a transactional, pressure-based model that could realign transatlantic relations for years to come.
Highlights of Trump’s Trade Position:
- 15% Tariff Minimum: Applies broadly to EU goods, with no exemptions beyond pharmaceuticals.
- Exclusion of Pharmaceuticals: Medical products will not be covered under the proposed deal, hinting at separate bilateral arrangements.
- Non-Negotiable Deadline: The August 1st cutoff is binding and applies universally, further constraining EU leverage.
- Zero-Sum Diplomacy: Trump frames the deal not as cooperation, but as a contest of economic strength.
Strategic Implications for Europe’s Digital Future
While tariffs dominate headlines, Trump’s stance casts a longer shadow over the EU’s digital and blockchain sectors. His rhetoric suggests a broader effort to limit European access to the U.S. market—a move that could dramatically impact innovation, competitiveness, and cross-border tech partnerships.
Firms likely to be affected include:
- Ledger, a prominent crypto wallet provider;
- Sovereign cloud infrastructure companies, integral to EU data sovereignty;
- Blockchain firms involved in Web3, stablecoin issuance, and tokenized asset markets.
If enacted, the tariff floor could erode cost advantages for EU tech companies, placing them at a disadvantage to U.S. rivals protected by a highly favorable domestic environment. Meanwhile, transatlantic regulatory harmonization projects—from digital identity frameworks to stablecoin policy coordination—could stall under the weight of trade tensions.
Deal or No Deal? 50/50 Odds and Rising Pressure
Trump underscored the high stakes, noting there’s only a “50-50 chance” of any trade agreement being reached. This calculated ambiguity, paired with the rigid August 1st deadline, forms part of a broader maximum-pressure negotiation playbook.
“The August 1st deadline is the same for everyone,” Trump warned—an assertion designed to minimize EU bargaining power and maximize U.S. leverage in the short window remaining.
With strategic sectors at risk, the EU must now choose between two difficult options: accept the Trump administration’s terms or face a potentially destabilizing trade standoff.
@ Newshounds News™
Source: CoinTribune
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Key US Economic Events This Week: What They Mean for Bitcoin and Altcoins
With several major U.S. economic events lined up this week—including the FOMC policy meeting, Q2 GDP data, and the July jobs report—investors in Bitcoin and altcoins are closely watching for signals that could shift market sentiment.
Why It Matters for Crypto
The U.S. economy and digital asset markets are increasingly intertwined. While traditional markets showed modest growth last week (+1.21%), the crypto market declined by 1.66%, reflecting macro uncertainty. This week’s economic calendar could further influence risk appetite and volatility in crypto markets.
Key Economic Events to Watch
1. FOMC Meeting (July 29–30, 2025)
Fed Chair Jerome Powell’s press conference on July 30 will follow the two-day meeting of the Federal Open Market Committee.
- Expected Interest Rate Range: 4.25% – 4.50% (no change)
- Inflation Data: Up for second straight month — 2.7% in June
- Initial Jobless Claims: Fell to 217,000 from 221,000
Potential Crypto Impact:
- If the Fed stays cautious and avoids any dovish hints, crypto prices may trade flat or consolidate.
- However, persistent inflation could make Bitcoin and other digital assets more appealing as inflation hedges.
2. Q2 GDP Estimate (July 30, 2025)
The advance estimate of second-quarter U.S. GDP is also due Wednesday.
- Q1 2025 GDP: -0.5% contraction
- Q2 Consensus: +2.5% rebound
Potential Crypto Impact:
- A strong GDP rebound could delay any monetary easing, muting crypto rallies.
- Yet, signs of economic resilience might boost overall investor confidence across risk markets, including altcoins.
3. Non-Farm Payrolls & Unemployment Rate (August 1, 2025)
Friday’s July employment report is likely to be a major market mover.
- June NFP: 147,000
- Consensus for July: 102,000
- Unemployment Rate (June): 4.1% → Expected July: 4.2%
Potential Crypto Impact:
- Weaker job growth and a rising unemployment rate could fuel expectations of Fed rate cuts, favoring crypto.
- In previous cycles, poor labor data has sparked bullish momentum in Bitcoin, Ethereum, and mid-cap altcoins.
Summary of Potential Market Reactions
Indicator
Result Impact
Crypto Market Outlook
Fed Keeps Rates Steady
Neutral/Hawkish
Consolidation or mild downside
GDP Beats Expectations
Strong Economy Signal
Mixed: Limits rate cuts, but boosts sentiment
Job Market Weakens
Rate Cut Signal
Bullish for crypto as risk appetite returns
Final Takeaway
In an environment shaped by inflation, labor market shifts, and GDP surprises, crypto markets are no longer insulated from traditional macro forces. With the Fed’s tone becoming more nuanced, Bitcoin and altcoins could see both headwinds and tailwinds depending on how these key indicators land.
Smart investors will position accordingly—balancing short-term caution with long-term conviction in blockchain-based assets.
@ Newshounds News™
Source: Coinpedia
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Senate Democrats Probe FHFA
Senate Democrats Probe FHFA Over Crypto-Backed Mortgage Proposal
A group of Senate Democrats is demanding answers from Federal Housing Finance Agency (FHFA) Director William Pulte following his directive for mortgage giants Fannie Mae and Freddie Mac to explore how cryptocurrency holdings might be considered in mortgage risk assessments—without requiring conversion into U.S. dollars.
Democrats Seek Answers on Risk and Oversight
In a letter led by Senator Jeff Merkley and co-signed by Elizabeth Warren, Bernie Sanders, Chris Van Hollen, and Mazie Hirono, the lawmakers request detailed clarification on the plan’s intent, risks, and implications for the U.S. housing market and financial system.
“We need to fully assess the potential risks and benefits of your order,” the senators wrote, citing fears that integrating crypto into federally-backed mortgages could pose serious safety and soundness concerns.
Pulte’s Directive Sparks Concern
Last month, Pulte instructed Fannie Mae and Freddie Mac to prepare proposals on how crypto assets could factor into single-family mortgage loan approvals, signaling a potential shift in mortgage underwriting standards.
Under current FHFA policy, crypto assets must be converted to U.S. dollars before being considered in any mortgage evaluation. Pulte’s proposal would remove that requirement.
Crypto Volatility and Consumer Risk
The senators emphasized that crypto’s high volatility, lack of liquidity, and exposure to scams, cyberattacks, and theft could place borrowers at greater risk of default:
“Borrowers may not be able to exit a crypto position and convert to cash at a price that would allow them to buffer against the risk of mortgage default.”
They also warned that homeowners could lose crypto assets without any realistic path to recovery, highlighting the heightened consumer risk this policy could introduce.
Conflict of Interest Allegations
The letter raises additional alarms about potential conflicts of interest:
- Pulte’s spouse reportedly holds up to $2 million in crypto assets.
- He serves as chair of both Fannie Mae and Freddie Mac’s boards, which are responsible for approving any crypto-related proposals.
- The senators accuse him of “stacking” the boards with crypto industry allies, undermining the objectivity of any decision-making process.
The Democrats also flagged President Trump’s deep involvement in the crypto industry, citing links to crypto mining operations, stablecoins, trading platforms, and memecoins—suggesting that political influence could further skew the policy’s development.
Lack of Transparency and Process
Lawmakers criticized the FHFA’s directive as vague and opaque, providing no clear process for:
- Developing and evaluating the crypto proposal
- Gathering public or industry feedback
- Assessing market or consumer risk
They stressed the need for “clarity on this order,” especially in light of the FHFA’s alleged failures to oversee crypto exposure in the 2023 banking crisis, where three crypto-linked banks collapsed amid liquidity concerns.
Precedent and Institutional Hesitation
The senators noted that Fannie Mae itself concluded in a 2021 internal review that using crypto or stablecoins as collateral or payment vehicles was the least appealing application of blockchain in housing finance.
Despite that, Pulte’s directive now reopens the conversation, prompting lawmakers to ask for:
- All communications regarding crypto policy
- FHFA’s process for approving the directive
- Pulte’s plans to recuse himself from potential conflicts of interest
Conclusion
While some view crypto integration into traditional finance as inevitable, this Senate inquiry underscores the deep skepticism within parts of the U.S. government regarding crypto’s stability, transparency, and suitability for long-term housing finance. The FHFA has until August 7 to formally respond.
@ Newshounds News™
Source: Cointelegraph
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