President Trump of the United States has fulfilled his threat, imposing a 25% general tariff on imports from Canada and Mexico, and a 10% tariff on Chinese goods starting from Tuesday, triggering a broad decline in the cryptocurrency market. Bitcoin has been declining since the weekend, reaching a low of $96,150 this morning, a 24-hour drop of 3.2%. Ethereum has also fallen below the $3,000 mark, and Trump's meme coin TRUMP once fell below $20, a 53.8% drop in the past two weeks.
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ToggleThe US imposes tariffs on Canada, Mexico and China
Last Saturday (2/1), US President Trump signed an order imposing a 25% tariff on goods imported from Mexico and Canada, and a 10% tariff on goods from mainland China. Energy resources from Canada will be subject to a lower 10% tariff.
Canadian Prime Minister Justin Trudeau subsequently announced retaliatory tariffs of 25% on $107 billion worth of US goods, and Mexican leader Claudia Sheinbaum also promised retaliatory tariffs. The Chinese Ministry of Commerce issued a statement promising corresponding countermeasures, but did not provide details, and promised to file a complaint with the World Trade Organization.
Cryptocurrencies decline across the board
Affected by the trade war, the US dollar has risen against major currencies, the yield on 10-year US Treasuries has risen, and cryptocurrencies have declined across the board.
Bitcoin has been declining since the weekend, reaching a low of $96,150 this morning, a 24-hour drop of 3.2%.
Ethereum has also fallen below the $3,000 mark, closing at $2,855 before the deadline, a 24-hour drop of 8.6%.
Meme coins have reacted more violently, with DOGE down 14.3% in 24 hours, and Trump's meme coin TRUMP once falling below $20, a 53.8% drop in the past two weeks.
Market worries about inflation resurfacing
Economists are concerned that as price pressures appear to be starting to ease, tariffs may reignite inflation risks. The uncertainty of the trade war has also triggered a decline in global stock markets.
US non-farm payrolls, the unemployment rate, and the University of Michigan consumer confidence index will be released this Friday.
Risk Warning
Cryptocurrency investment is highly risky, with prices that may fluctuate wildly, and you may lose your entire principal. Please carefully evaluate the risks.
