Donald Trump, the newly elected president of the United States, has confirmed that tariffs on countries like Canada and Mexico will begin next month. These newly introduced tariffs would address the existing immigration issues and trade imbalances, which could significantly impact inflation and economic development. Donald Trump’s tariff threat incited a price drop in crypto. Popular cryptocurrencies like Bitcoin have had to face some significant price drops since Trump announced the 25% tariff on imported products from Canada and Mexico. French President Emmanuel Macron stated In response to Donald Trump’s tariff threat that they did not need a trade war but rather needed more prosperity together.
Trump’s Tariff; A Primary Catalyst Behind the Drop in Crypto!
Donald Trump is on the verge of imposing a 25% tariff on Canadian and Mexican imported products and a 10% tariff on Chinese products. He stated that his tariffs on Canada and Mexico are starting next month. The newly introduced policies have catalyzed some shifts in the market. Traditional markets were affected negatively, the price of the Australian dollar hit its lowest point since the Covid pandemic. The crypto market also suffered from significant price fluctuations and sharp declines.
The news of the introduction of the tariff has already caused enough problems in the crypto market. The cryptocurrency market had undergone a significant crash in the first week of February followed by the news. The market capitalization crashed to $3.06 from the latest high of $3.8 trillion. According to the latest information, the crypto market dipped by 8% since Donald Trump announced the new tariff on Mexico and Canada would commence in March. The price of Bitcoin dropped below $92,000 and Solana plunged by 15% and currently trading at $139.91 at the time of writing.
The decline arose from the tariff news has reportedly wiped off around $230 billion from the crypto market capitalization. Besides the price drop in Bitcoin and Solana, the announcement by Donald Trump caused around $900 M in leveraged liquidations in the crypto market. Donald Trump is not planning to amend or change his tariffs amid the fluctuation in the global market, he repeated and emphasized by stating that the tariffs are going forward on time, on schedule.
Market Crash Caused by Trump’s New Tariff
The crypto market experienced a significant crash followed by Donald Trump’s new tariff policy. Major digital assets had experienced a notable price drop and reportedly showed more than 10% dip over the past 24 hours. Ethereum (ETH) fell to $2,523.37, a 10.61 dip in the market. XRP experienced a 10.85% decline and reached $2.30, Solana dropped to $143.13 which is a 14.85% dip in its market performance. Cardano (ADA) also experienced a significant decline, it suffered a 10.96% loss and was trading at $0.6859. Binance Coin (BNB) suffered a comparatively lower dip, it reportedly experienced a 6.55% dip and trading at $615.13. The recent market crash resulted in nearly $900 million in leveraged liquidations in the crypto market.
Edul Patel, the CEO and co-founder of Mudrex, a crypto exchange platform, stated that the crypto market had a strong reaction to Trump imposing import tariffs on goods amid rising inflation concerns. He noted that after Bitcoin recorded its first monthly close above $100,000 in January 2025, it was now consolidating between $91,200 and $94,800.
Donald Trump’s View on the New Tariff Policy
Donald Trump’s new tariff has been one of the most debated topics in world politics. He is on the verge of imposing a 25% tariff on Canadian and Mexican imported products and a 10% tariff on Chinese products. Trump has reiterated that the policy is going to come into force in the next month.
Donald Trump stated to the EU that he didn’t expect anything very dramatic. He mentioned that they put tariffs on them and that they owed a lot of money, expressing confidence that they(countries like Mexico, Canada, and China) were going to pay. He pointed out that they didn’t take their(America’s) cars or farm products, indicating that they took almost nothing, while they (America) took everything, including millions of cars and tremendous amounts of food and farm products. He also added that they were on time with the tariffs and that it seemed like that was moving along very rapidly. He mentioned that they had been mistreated by many countries, not just Canada and Mexico and that they had been taken advantage of. He added that tariffs were going forward on time and schedule. Trump expressed his views about going forward with his reciprocal tariffs plan,
He explained “Tariffs will go forward. Yes, we will make up a lot of territory. All we want is reciprocal, we want reciprocity. So if someone charges us we charge them, it is very simple. It will be very good for our country. Our country will be extremely liquid and rich again”
