US President Donald Trump and European Commission President Ursula von der Leyen reached a preliminary trade agreement during talks in Turnberry, Scotland, averting potential 50% tariffs on key EU imports. The deal framework includes EU commitments to purchase $750 billion in U.S. energy and invest an additional $600 billion in American initiatives.
This breakthrough comes two weeks after Trump threatened 30% tariffs on most EU goods (rising to 50% for steel/aluminum), originally scheduled for August 1 enforcement. The compromise establishes a 15% baseline tariff across all goods, with potential sector exemptions still under negotiation for automobiles, pharmaceuticals, and semiconductors.
Market reaction was immediate: Binance Coin (BNB) surged to a new all-time high above $825, reclaiming its position as the fifth-largest cryptocurrency from Solana. Bitcoin rose to $119,000 (approaching $120K), while Ethereum gained over 3% to trade near $3,850. Though tariff news previously caused crypto sell-offs (notably in April), this resolution reduced volatility concerns as Trump had earlier estimated only a "50-50 chance, maybe less" of a deal.
Analysts note cryptocurrencies historically benefit from trade uncertainty as alternative assets, evidenced by BTC volume spikes during past U.S.-China tensions. However, the current rally reflects relief at avoided escalation, with reduced safe-haven demand potentially limiting long-term upside.