Today, President Donald Trump's tariff policy towards Canada, Mexico and China officially takes effect. However, the cryptocurrency market has recorded a serious decline.
Also Read: Trump's Executive Order May Change the Bitcoin Market Cycle
Trade war under Trump
Initially, Trump did not announce an increase in tariffs on foreign goods that he had promised to implement. Global stock indices, cryptocurrencies and major foreign currencies against the dollar have seen slight price increases.
However, according to BeInCrypto's report, from Trump's revised tariff plans, the US will impose a 25% tariff on goods from Canada and Mexico and a 10% fee on imports from China. This new tariff policy has officially taken effect this February. Trump also said that after these countries, Europe will be the next target to be subject to the new tariffs from the US.
Immediately after the new tariff rates were applied, Canadian Prime Minister Justin Trudeau announced that he would retaliate. Accordingly, Canada announced a 25% retaliatory tariff on $155 billion worth of US goods. The trade war seems to have begun. But besides Canada, Mexico and China have not yet recorded any new moves.
During the election campaign, President Trump proposed a 60% tariff on products made in China and a 10% tariff on foreign imports. Trump's initiatives, including tariffs, tax cuts and mass deportations, are likely to contribute to inflation.
This move by Trump is expected to put pressure on risky assets, including cryptocurrencies, as happened in December after Trump's trade hike. Although the cryptocurrency market had a strong start to the year, volatility has certainly returned due to Trump 2.0.
Picture of the cryptocurrency market today. Source: BeInCryptoAt the time BeInCrypto wrote this article, the total market capitalization of the entire cryptocurrency market recorded a decline of more than 6%, dropping to the level of $3.6 trillion. Bit (BTC) also lost the $100,000 mark and is currently trading at $99,559. Ethereum (ETH), Solana (SOL), Cardano (ADA) also recorded declines of 7%, 10% and 8% respectively in the past 24 hours.
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