Europe-bound Bitcoins face potential tariffs under Trump's proposed plan
In a move aimed at bolstering the domestic mining industry, US President Donald Trump has announced a new measure to impose a 20% surcharge on Bitcoin exchanges selling Bitcoins traded in the European Union. This move is part of Trump's strategy to make the US the 'Crypto Capital of the World.'
The proposal has been praised by Treasury Secretary Howard Lutnick, who believes that while tariffs may initially hurt the economy and make things more expensive, they are ultimately beneficial. Lutnick's support comes as Trump's primary crypto advisor, David Sacks, has been pushing for a pro-crypto stance. This includes establishing a strategic Bitcoin reserve, rejecting government-issued digital currencies (CBDCs), and positioning the US as a global crypto hub while maintaining national reserves of seized cryptocurrencies.
However, the European Union remains optimistic that the measure will be ineffective. High electricity prices in Europe are expected to make Bitcoin mining insignificant for the European economy. The EU expresses confidence in this regard, stating that the proposed tariffs will not have a significant impact.
Trump's decision to impose tariffs on Bitcoins traded in the EU comes after he expressed concern over the Biden government's alleged allowance of Europe to benefit from US Bitcoin exchanges. Jeffrey Sachs, Trump's 'Crypto Czar,' has presented a report calculating tariffs on Bitcoins traded in the EU, aiming to make European Bitcoins unattractive on US exchanges.
In response, Commission President Ursula von der Leyen's press office stated that Trump does not understand Europe, suggesting that the EU is already two steps ahead in this matter. Despite this, Trump's proposal aims to strengthen the US mining industry and position the US as a global leader in the crypto market.
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Stay tuned for more updates as this story continues to unfold.
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