- Donald Trump and Justin Trudeau to speak today
- Trump’s tariffs brought the prices of cryptos down
- Altcoins suffered the worst, and even Bitcoin wasn’t immune
Following the U.S. tariffs over Canada, Donald Trump and Canadian Prime Minister Justin Trudeau are set to speak today to address rising trade tensions.
The tariffs are set to take effect on February 4. In response, Trudeau asserted that Canada will retaliate with equivalent tariffs on US goods.
Crypto World Reacts to Tariff Shock
Combined with tariffs on Mexico and China, plus threats toward the European Union with the same actions, Trump’s latest actions have caused chaos in the crypto world.
Bitcoin and Ether suffered steep price drops. The former fell below $100,000, reaching a three-week low of $91,441.89. As the second-largest cryptocurrency, Ether dropped to $2,494.33, its lowest point since early September.
Altcoins Take a Harder Hit
Altcoins have borne the brunt of it. For instance, XRP experienced a 9.7% decline, trading at $2.35. Other coins, such as Solana and Cardano, also faced significant losses amid the escalating trade tensions.
Related: Ripple Signs More U.S. Deals in Six Weeks Than in Previous Six Months
This recent decline in the cryptocurrency market, especially among altcoins, is closely linked to the economic uncertainties and market reactions stemming from Trump’s newly announced tariffs.
How the Crypto Crash Started
On February 1, 2025, US President Donald Trump announced hefty tariffs on imports from Canada, Mexico, and China, citing concerns over illegal immigration and the influx of fentanyl into the United States. The tariffs include a 25% duty on imports from Canada and Mexico (with Canadian energy resources subject to a lower 10% tariff) and a 10% duty on imports from China.
Retaliatory Measures and Global Concerns
In response, Canada and Mexico implemented retaliatory tariffs on US goods. Canadian Prime Minister Justin Trudeau declared 25% tariffs on US products valued at $107 billion, at the same time expressing disappointment over the strained relationship with its neighbor. Similarly, Mexico’s President Claudia Sheinbaum set tariffs from 5% to 20% on various US products.
Related: China’s DeepSeek AI Wipes Out $1 Trillion From US Crypto and Tech Markets
These developments have fanned fears of a global trade war, causing considerable market instability. As a result, investors have shifted away from riskier assets, including cryptocurrencies.
That’s why all eyes are on Trump’s and Trudeau’s talks (as well as Trump’s talks with the Mexican leaders). If the situation gets resolved, it will be a good step forward for the crypto market recovery.
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