Trump's EU Tariffs of January 2026: Did the Bitcoin Price Sink or Soar? What Happened

Update 26 September 2026: The 10% tariffs planned for 1 February never came: President Trump withdrew them on 21 January 2026 in Davos after agreeing a "framework of a future deal" on Greenland with NATO. Bitcoin sank anyway. According to CoinGecko daily data, it fell from about $94,800 on 18 January to its 2026 low of about $58,600 on 1 July and trades at about $84,200 on 26 September 2026. The January analysis follows as a dated snapshot.

What happened after the tariff threat?

The day of the biggest drop is covered in our report on the crypto crash of 20 January, the turn in Davos in our report from Davos. On 20 February the US Supreme Court also ruled that the emergency powers law IEEPA does not allow such tariffs, as our analysis of the ruling explains.

The analysis from 18 January 2026

The global financial landscape has been jolted once again as President Donald Trump announced a fresh wave of tariffs targeting eight European nations. As of January 18, 2026, the administration has vowed to impose an initial 10% tariff, set to rise to 25% by June, on imports from Germany, France, the UK, and others. The primary catalyst? A renewed and aggressive push for the U.S. to acquire Greenland.

While trade wars traditionally impact equities and commodities, the crypto news cycle is now dominated by how these geopolitical tensions will ripple through digital assets.

Bitcoin as a Risk Asset vs. Digital Gold

Historically, Bitcoin has struggled during the immediate onset of trade "shocks." In April 2025, the so-called "Liberation Day" tariffs caused a massive liquidation event, and October 2025 saw $BTC price drop significantly following 100% tariffs on China.

In the current 2026 climate, Bitcoin is trading in a tight range between $94,000 and $97,000. Analysts are divided on the immediate outlook:

• The Bearish View: Sharp tariff increases often lead to "risk-off" sentiment. Investors frequently flee volatile assets like $Ethereum and $Solana in favor of gold or cash.
• The Bullish View: High tariffs are inherently inflationary. As the cost of imported goods rises, the purchasing power of fiat currencies like the Euro and the Dollar may decline. This could eventually drive institutional demand back to Bitcoin as a hedge against debasement.

Market Liquidation and Volatility Risks

The 2025 precedent shows that trade-induced volatility can lead to massive deleveraging. According to data from Reuters, previous tariff announcements triggered billions in liquidations within 24 hours. For traders using high leverage on an crypto exchanges, these sudden "Trump Tweets" or Truth Social posts represent a major systemic risk.

If the EU activates its "Anti-Coercion Instrument" to retaliate, we could see a prolonged period of market instability. During such times, securing assets in hardware wallets becomes even more critical as exchange liquidity can tighten during extreme price swings.

Can the "Crypto President" Save the Rally?

The irony of the current situation is that the Trump administration has been outwardly pro-crypto, even launching its own financial products and ETFs. However, protectionist trade policies often counteract the "crypto-friendly" narrative by strengthening the US Dollar Index (DXY). Since Bitcoin and the Dollar often share an inverse relationship, a "stronger" dollar caused by trade barriers can keep $BTC prices suppressed in the short term.

As reported by Bloomberg, the next few weeks will be crucial. If Bitcoin breaks below the $80,000 support level, we could see a deeper correction. Conversely, if it holds the $95,000 mark despite the EU tariff news, it may confirm the "digital gold" thesis for the rest of 2026.