TLDR
- U.S. extends pause on Trump China tariffs until August 31, 2025, during ongoing trade negotiations
- Bitcoin jumped from $103K to $105K following the tariff extension announcement
- Federal courts ruled Trump administration exceeded authority on tariffs under IEEPA law
- July 8 deadline set for finalizing major trade deals with foreign governments
- Ethereum rose 2.67% to $2,606.89 as crypto markets reacted positively to news
The U.S. government extended its pause on tariffs imposed on Chinese goods until August 31, 2025. The decision comes during ongoing trade negotiations between the Trump administration and key global trading partners.
The tariff extension has drawn attention from both traditional financial markets and cryptocurrency investors. Bitcoin responded immediately to the news, jumping from $103,000 to over $105,000.
Two federal courts recently challenged the Trump administration’s tariff authority. On May 28, the U.S. Court of International Trade ruled against tariffs targeting Chinese, Mexican, and Canadian imports.
The court called the tariffs unjustified under current law. A day later, a U.S. District Court in Washington, D.C., issued a separate ruling involving toy companies Learning Resources and hand2mind.
Both courts found that the International Emergency Economic Powers Act (IEEPA) does not authorize broad tariff use in trade policy. The Trump administration quickly appealed both decisions and requested stays.
In one case, a federal appeals court issued a temporary stay allowing tariffs to remain during early appeal stages. The administration asked the U.S. DC Circuit Court of Appeals to pause the second ruling.
Court Challenges Shape Trade Policy
The legal challenges prompted the Trump administration to announce a firm July 8, 2025 deadline for trade deals. President Trump urged foreign governments to present their best offers by that Wednesday.
The White House stated that failure to reach agreements would result in reinstating paused tariffs after the 36-day window closes. An administration spokesperson called the pause “a strategic move” allowing talks without immediate penalty pressure.
The administration maintains that tariffs remain necessary for enforcing fair trade policies. Officials cite efforts to pressure foreign countries on drug trafficking and trade balance issues.
Analysts are watching how courts will respond to the administration’s appeal for longer stays on initial rulings. A decision is expected later this month.
Crypto Markets Surge on Tariff News
The tariff pause extension triggered strong cryptocurrency market reactions. Bitcoin showed renewed momentum after climbing past $105,000 from its previous $103,000 level.
This follows a pattern from Trump’s April 90-day pause announcement when Bitcoin surged from $74,500 to over $82,000. The momentum continued through May with Bitcoin reaching nearly $112,000.
Ethereum rose 2.67% to $2,606.89 following the latest tariff delay news. Other cryptocurrencies including XRP and Dogecoin also posted daily gains after the August pause announcement.
Investors view the tariff pause as reducing global trade tension. This sentiment shift has consistently supported cryptocurrency price movements during previous trade negotiations.
Peter Schiff expressed concerns about tariff impacts on manufacturers. Business groups worry about supply chain disruptions and increased consumer prices from higher import costs.
The irony of Trump's misguided 50% steel and aluminum tariffs is that while they'll help those companies in the short run, by reducing the competitiveness of their customers, the tariffs will ultimately backfire, resulting in manufacturing job losses, even in steel and aluminum!
— Peter Schiff (@PeterSchiff) June 2, 2025
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