Since President Trump’s inauguration in November 2024, the world tariffs and US deficit have been the center of attention. In March 2025, President Trump announced a list of countries that will have reciprocal taxes on their imports and exports. The news sent shockwaves throughout global economies, with the S&P 500 registering its highest volatility ever, which naturally also affected the cryptocurrency market.
The latest developments and focus of the US administration are eyeing the European Union, and recently, the US imposed a 50% tax on all EU products. While this isn’t how the dispute ended, we’re examining its impact on the market, the outcomes, and how to find alternative investments, such as the Yieldfund.
Latest developments in the us-eu tariff war
The trade relationship between the United States and the European Union has faced its share of challenges, but it has recently taken a step toward easing tensions. Former US President Donald Trump, who had previously threatened to impose 50% tariffs on EU imports, decided to delay these measures. Following a conversation with European Commission President Ursula von der Leyen, Trump extended the deadline for trade talks to July 9. Von der Leyen emphasized the importance of finding a constructive solution and requested additional time to work toward a “good deal.”
This decision follows Trump’s earlier announcement in April of “reciprocal” tariffs aimed at many of the United States’ global trade partners. While negotiations continue, the situation highlights the complexity and fragile nature of international economic relationships, underscoring the importance of collaboration in addressing trade disputes.
What do tariffs mean for the EU economies?
Tariffs, often designed as protective economic tools, can create far-reaching ripple effects. When the US imposes tariffs on EU goods, European exporters face higher costs to access the American market, while retaliatory tariffs from the EU compound challenges for both sides. Recently, the US imposed a 25% tariff on EU steel and aluminum, followed by a steep 50% hike on all EU imports.
What does this mean for EU economies?
Economic forecasts predict that EU GDP growth will slow to 1.2% in 2025 and drop further to 0.8% in 2026, as the long-term impact of sustained tariffs outweighs any short-term trade surges from front-loading. For most of the eurozone, the inflationary effect of these tariffs is minimal, adding just 0.017 percentage points to the overall inflation rate. However, in countries like the Netherlands, inflation could rise slightly higher, reaching 3.0% in 2026 compared to previous estimates of 2.8%.
The effects are especially pronounced in key industries. Dutch steel and German automotive parts, critical EU exports to the US, are now facing considerable barriers. In 2024 alone, Dutch exports of steel and aluminum to the US were valued at €1 billion, highlighting the tangible impact of these tariffs on European trade.
As these policies take hold, the economic headwinds for the EU are becoming increasingly clear.
How will US tariff policies impact the eurozone?
The broader eurozone is facing a protracted economic slowdown under the weight of the ongoing trade war. There are several sectors that the EU primarily imports into the US, which will be more vulnerable to tariff hikes. However, this can also be said for US exports.
Since 2018, during Trump’s first term, the EU has added a series of amendments to its US import list, which could impact the Bourbon and automotive industries.
For investors, these conditions exacerbate already fragile financial markets as yields start trending downward. Supply chains face disruptions, consumer confidence decreases, and governments simultaneously absorb retaliation efforts.
How has crypto reacted to the EU-US tariff announcement?
Crypto is closely tied to the tech stock market and has experienced volatility both before and after the two announcements. Bitcoin dropped below $105,000 but quickly reclaimed the $109,000 mark shortly after the US president announced a delay in the implementation of new tariffs. This demonstrates a critical connection between traditional economic policies and speculative assets, such as cryptocurrencies, which aren’t immune to global market shifts.
The price of Bitcoin rose by as much as 3.2% following the announcement, made after trading hours. That said, investors could see Bitcoin take further upside or downside signs if economic and political uncertainty persists.
For the time being, crypto, mostly Bitcoin, is trading within its channel, while altcoins have taken a significant hit since the Trump tariff announcements in April 2025. The erratic nature of tariff policies warns crypto investors of volatile macroeconomic events, further underscoring the importance of diversification.
Extended periods of economic uncertainty can introduce volatility into speculative investment avenues, such as cryptocurrency. The boom-and-bust cycle influenced by tariff announcements or pauses makes cryptocurrencies as risky for investors as other investment vehicles, which are considered risk-on assets.
Is Yieldfund an investment alternative?
Trade battles, economic uncertainty, and even crypto volatility are something investors could live without. For experienced investors, this is a segment in which they can thrive; however, for regular users seeking to diversify their portfolio, it may pose a risk.
Yieldfund provides an alternative to traditional crypto investment and enables users to diversify their holdings with minimal risks. By trading only the top 100 cryptocurrencies regardless of market conditions, Yieldfund is designed to grow investment beyond traditional methods.
Why consider Yieldfund?
- High returns: Yieldfund delivers up to 5% monthly and 60% annual returns, outpacing traditional portfolio strategies influenced by global trade tensions.
- Risk management: Yieldfund allows for strategic diversification, balancing the growing demand for secure and impactful investment categories like crypto.
- Market volatility hedge: Relying on its unique asset combinations, Yieldfund effectively counterbalances risks while maximizing asset liquidity.
Yieldfund offers investors a path to diversify and secure their portfolios, helping to shield against the uncertainties of traditional markets. Take the first step in protecting and growing your wealth today.
