Bitcoin Drops Another 3% After Trump Targets German Autos, Timber With Tariffs
President Donald Trump continued to rattle Bitcoin and other markets by announcing new tariffs on German autos and timber, raising import duties from 15% to 35%, citing Germany’s failure to comply with previous trade agreements.
According to Trump’s Truth Social post, the tariffs will take effect on March 20. Trump also called on Germany to drop tariffs on US beef and warned of higher tariffs on German industrial products in April.
In the statement, President Trump criticized Germany’s import duties on US agricultural products, which range from 200% to 300%, calling them “absurd.” He also threatened to declare a national emergency on auto imports to counter what he described as “unfair competition” from Germany.
In addition, Trump warned that if Germany does not remove its "severe" tariffs, the US will sharply increase tariffs on industrial products from Germany in early April - a move he claimed would cause "substantial damage" to the German manufacturing industry.
Trump also joked that "the only way this will work is if Germany joins the United States as our 52nd state. That would take away all the tariffs, and that would solve all the other problems."
Markets reacted strongly to the statement.
Bitcoin fell another 3.1% to just below $78,000, while the Nasdaq Composite dropped more than 500 points. Investors are reacting to both the trade tensions and the administration’s statement that there are no new plans to add Bitcoin to the nation’s strategic reserves.
At the time of writing, Bitcoin has recovered slightly to $79,500.
Tariff dispute continues to escalate
The tariff increase follows Trump’s previous round of tariffs on products imported from the European Union. Germany and other EU countries have voiced their opposition, arguing that it violates international trade agreements.
