Bitcoin, Ripples XRP, Solana, and Dogecoin Fall Hard As President Trump Launches New Trade War
The price of Bitcoin nosedived after President Donald Trumps administration signed an executive order imposing new steep tariffs on all imported goods from China, Mexico, and Canada. The top coin by market cap is now down 4.4% on the day and roughly 6.8% over the last week at a current price of $97,754.
Altcoins fared far worse than Bitcoin as Trump started a trade war with the U.S.s biggest trading partners.
Crypto Bleeds As Trump-Imposed Import Tariffs to Start Tuesday
President Donald Trump has set the duties at 25% on all imports from Canada and Mexico and 10% on goods from China.
The sustained influx of illicit opioids and other drugs has profound consequences on our Nation, endangering lives and putting a severe strain on our healthcare system, public services, and communities, the president posited in his Executive Order authorizing the tariffs.
Although the new levies were initially set to take effect on Feb. 1, the implementation was pushed to Feb. 4. Moreover, a senior White House official told the Wall Street Journal that the tariffs will remain in place until POTUS is satisfied the named nations have halted the flow of illegal drugs into the U.S.
Before plunging on Friday, Bitcoins price had erased some losses witnessed earlier this week as Chinese AI startup DeepSeek unnerved investors. On Thursday, the foremost cryptos price came within 3.1% of its lifetime high of $108,786, which was set ahead of Trumps inauguration on Jan. 20.
China, Canada, And Mexico Retaliate
Shortly after President Trump announced the tariffs, Mexicos President Claudia Sheinbaum noted in an X post that she has instructed the Secretary of Economy to implement plan B, which includes tariff and non-tariff measures in defense of Mexicos interests.
Canadas Prime Minister Justin Trudeau said in an address to Canadians on Saturday night that the nation would impose a 25% tariff on $106.5 billion worth of US goods. Trudeau also announced that Canada was also exploring non-tariff responses affecting the energy sectors.
Chinas Ministry of Commerce revealed it will be unleashing a complaint with the World Trade Organization (WTO) and take corresponding countermeasures.
Bitcoin dove under the psychologically significant $100,000 threshold for the first time since Jan. 27 on the heels of the retaliations.
Other major cryptocurrencies have fallen even harder than Bitcoin on the day, with Ether tumbling over 9.1% to $2,962.67, while Ripple-promoted XRP is down nearly 13.3% to $2.59. Solanas SOL has fallen about 10.6% to $201.99, with Dogecoin dipping over 15% to $0.2718.
Text source: ZyCrypto
