TLDR
- Over $570M in crypto long positions were liquidated within 24 hours following Trump’s global tariff announcement.
- Ethereum lost $168.9M in long positions, the highest among cryptocurrencies during the market crash.
- Trump imposed 35% tariffs on Canadian goods, while exempting USMCA-covered items from new duties.
- Southeast Asian nations now face up to 40% U.S. tariffs, with Laos and Myanmar receiving the steepest increases.
The global cryptocurrency market faced heavy losses as over $570 million in long positions were liquidated within 24 hours. This sharp drop came after U.S. President Donald Trump announced sweeping new tariffs targeting more than 60 countries. Canada, Mexico, China, and several Asian nations were included, triggering inflation concerns and investor panic across crypto and financial markets.
Trump Tariffs Spark Global Trade Tensions
The Trump administration released new tariff orders covering more than 60 countries. These tariffs range from 10% to as high as 50%, depending on each country’s trade balance with the U.S. Canada received one of the highest rates, now set at 35%, starting August 1 at 12:01 a.m. However, goods under the USMCA remain exempt, which covers much of the U.S.-Canada trade.
Mexico, the U.S.’s top trade partner, was granted a 90-day extension to allow more negotiation time. China, another key partner, is in ongoing talks with the U.S. before an August 12 deadline. The U.S. has kept a 15% rate on Chinese goods while discussions continue. The European Union, South Korea, and Japan now face a uniform tariff of 15%.
🚨 What looked like a normal Fed day just turned into a global shock.
Here is what happened:
• Q2 GDP came in hot at +3%
• Fed kept interest rates unchanged
• Powell said: “Tariff-driven inflation is just getting started… we’re staying patient”So far, everything was… pic.twitter.com/YIy41PgtGz
— Wise Advice (@wiseadvicesumit) July 31, 2025
The new trade order also removed the de minimis exemption on low-value imports under $800. This means all imports, regardless of value, will now be subject to tariffs starting August 29. The administration also added 50% tariffs on semi-finished copper from countries like Brazil, though some key goods such as orange juice and aircraft parts were left out.
Crypto Markets Experience Heavy Liquidations
Following the tariff announcements, crypto prices dropped sharply. Data from CoinGlass showed that around $577 million in long positions were liquidated within one day. In just four hours, $13 million more was lost. The market saw rapid sell-offs as traders reacted to fears of rising inflation and slowing global trade.
Ethereum led the liquidation wave, with $168.9 million in long positions wiped out. Bitcoin followed closely, with $144 million in long positions lost. The rest of the market also saw major losses, with altcoins shedding billions in value. Analysts linked the drop directly to the economic uncertainty caused by the sudden tariff hikes.
As investor confidence fell, trading volumes surged as traders rushed to exit positions. Many long traders were caught in the downturn, leading to forced liquidations on major exchanges. This drove prices down further in a short period.
Asian and South American Countries Face Steep Trump tariff Rates
Southeast Asian nations saw some of the highest Trump tariff increases. The U.S. set rates of 40% on Laos and Myanmar and 41% on Syria. Cambodia, Vietnam, Indonesia, Malaysia, and Thailand received adjusted rates between 19% and 20%. These countries now face higher export costs, affecting industries from textiles to electronics.
Pakistan, by contrast, saw its tariff rate cut from 29% to 19%. Pakistan’s Finance Minister said, “This deal marks the beginning of a new era of economic collaboration especially in energy, mines and minerals, IT, cryptocurrency and other sectors.” Taiwan is set to face a new 20% rate, while India will be charged 25%, along with a penalty fee due to trade links with Russia.
Brazil now faces a 50% tariff on many goods. However, essential U.S. imports like orange juice and aircraft parts are excluded. The administration confirmed that countries with which the U.S. has a trade surplus will continue to face the lower 10% rate, offering slight relief to nations like the UK.
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