By With a 25% tariff on Canada and Mexico, and a 10% tariff on China taking effect on Tuesday, U.S. President Donald Trump has begun implementing his protectionist trade policies. This move has sparked a new trade conflict with the country’s three largest trading partners, which also account for the bulk of its nearly $1 trillion trade deficit.
Cryptocurrencies Tumble Amid U.S. Tariff Uncertainty
Major cryptocurrencies experienced a decline on Monday, likely in response to the latest tariffs imposed by the United States on key trading partners. Investors, wary of escalating global trade tensions, moved away from riskier assets. Bitcoin hit a three-week low, while Ether dropped to its lowest level since September.
With a 25% tariff on Canada and Mexico and a 10% tariff on China taking effect on Tuesday, U.S. President Donald Trump has begun enforcing his protectionist trade policies. This move has sparked a new trade conflict with America’s three largest trading partners, which are also the biggest contributors to its nearly $1 trillion trade deficit.
Since the announcement, Canada has retaliated with its own tariffs on the U.S., fueling concerns of an all-out trade war. Meanwhile, China has vowed legal action, and Trump has hinted that fresh tariffs on the European Union are inevitable. However, the U.S. has temporarily paused tariffs on Mexico for one month.
Trump’s tariff announcement came on a Saturday, a non-trading day for most financial markets—except for cryptocurrencies, which operate 24/7. The sharp decline in digital assets underscores how uncertainty in global trade can impact the crypto market, which has seen substantial growth during Trump’s presidency.
Bitcoin dropped to around $94,000 on Monday morning, briefly touching a three-week low of $91,000. This marks a notable decline from its all-time high of $107,000 on January 20, the day of Trump’s inauguration. Memecoins also suffered significant losses—one linked to Trump fell nearly 12%, while a coin associated with Melania Trump plunged more than 13%, according to CoinMarketCap. Dogecoin also saw a sharp decline, losing over 24% in a single day.
Meme Coins: A Reflection of Market Sentiment
Meme coins are highly volatile cryptocurrencies driven by internet trends and cultural phenomena. Lacking intrinsic value, their prices can surge or crash unpredictably. These assets are often viewed as a gauge of retail investor sentiment and risk appetite in the cryptocurrency market.
Crypto Boom Under Trump
Investors speculated that Bitcoin could reach new highs if Donald Trump were elected, as his campaign strongly endorsed pro-crypto policies. The potential involvement of Elon Musk, a well-known cryptocurrency advocate, as a key adviser further fueled investor confidence in Bitcoin and other digital assets—despite concerns over possible conflicts of interest.
Several of Trump’s key appointees also signaled a crypto-friendly stance. Notably, Paul Atkins, tapped to lead the Securities and Exchange Commission (SEC), is widely regarded as a supporter of cryptocurrency. His role suggested that the new administration could foster a regulatory environment favorable to digital assets.
