Trump delivers heavy "tariff" news! Bitcoin rebounds to 118,000 USD, eliminating selling pressure from The Federal Reserve (FED) Chairman Powell's interest rate hold.

Trump's trade policy has once again become the focus of the world. He announced yesterday (30th) that a comprehensive trade agreement has been reached, imposing a 15% tariff on South Korea to secure $350 billion in South Korean investments. The agreement was completed before the negotiation deadline, avoiding the originally scheduled 25% tariff that was to take effect on August 1. The Federal Reserve (FED) Chairman Powell has weakened the prospects of a rate cut in September, which could have triggered selling pressure on Bitcoin (BTC), but Bitcoin has shown remarkable resilience, rising back to $118,000 today, alleviating market concerns.

Trump South Korea Trade Agreement Details and Investment Framework

President Trump announced an agreement reached with the "Truth Social" organization, stating that South Korea will invest $350 billion in U.S. projects. The agreement includes the procurement of $100 billion in liquefied natural gas and energy products. Kim Yong-hwan, head of the policy department of the South Korean government, confirmed that tariff reduction measures will apply to automobiles and other goods starting August 1.

The investment fund will allocate 150 billion dollars specifically for the shipbuilding industry, including ship construction and maintenance operations. An additional 200 billion dollars will be used for semiconductors, nuclear energy, secondary batteries, and biotechnology fields. These investments will be finalized at the upcoming summit between President Trump and President Lee Jae-myung.

Despite strong demands from the United States to open its markets, South Korea has successfully defended its agricultural interests. The government continues to maintain restrictions on rice imports and beef for more than 30 months. Kim Yong-hwan emphasized that due to concerns over food security, South Korea has decided to reject further agricultural concessions.

Compared to other trading partners facing similar tariff pressures, the agreement puts South Korea in a more favorable position. Under future trade measures, semiconductor and pharmaceutical products will receive treatment equal to that of other countries. Trump stated that South Korean President Lee Jae-myung will visit the White House in two weeks to officially finalize the relevant arrangements.

The Korean protocol was reached after Trump successfully negotiated with Japan and the Philippines last week. Japan agreed to a $550 billion investment plan and imposed a 15% tariff, while the Philippines accepted a 19% tariff.

The Federal Reserve (FED) Chairman Powell does not cut interest rates: Bitcoin eliminates selling pressure

(Source: Trading View)

Despite numerous pleas from President Trump, the U.S. central bank has still refused to lower the benchmark interest rate. The question is, what will happen to the price of BTC despite this much-anticipated decision? As explained in the Cobesi letter, most Federal Reserve officials oppose lowering interest rates, as evidenced by the 9 to 2 voting result.

Interestingly, the Federal Reserve's decision today, while expected, was made after the United States released a positive GDP report. As previously reported, the U.S. economy showed a significant rebound in the second quarter after a pullback in the first quarter.

In recent months, Trump has repeatedly urged Federal Reserve Chairman Powell to lower interest rates, but to no avail. He has called for the largest rate cut in the history of the Federal Reserve, with a reduction of 3 basis points. According to reports, after today's Federal Reserve decision was announced, Trump stated that he "heard" the central bank will finally lower interest rates at the next meeting in September.

The price of Bitcoin is highly influenced by the actions of The Federal Reserve (FED). Earlier today, due to expectations of interest rate cuts, the price of Bitcoin stabilized around $118,000. Although Bitcoin experienced some fluctuations in the hours leading up to the FED meeting and after the announcement of the interest rate cut, it has now approached this level again.

Conclusion:

The tariff policy of the Trump administration, although it brought uncertainty to the market, has not had a significant negative impact on Bitcoin, thanks to the trade agreement reached with South Korea and the Federal Reserve's decision to not cut interest rates. Bitcoin has shown its resilience, rebounding to $118,000, alleviating market concerns about selling pressure. This indicates that Bitcoin is gradually demonstrating its potential as a safe-haven asset in a complex macroeconomic and political environment.