NAIROBI (CoinChapter.com)—Bitcoin and Ethereum fell after U.S. President Donald Trump imposed a 25% tariff on steel and aluminum imports, sparking a sell-off in cryptocurrencies amid rising trade tensions.
BTC, ETH Slip But Partly Rebound After Trump’s Tariff Shock
Bitcoin (BTC) plunged from $97,000 to $94,000 following Trump’s announcement before recovering to $97,000, according to CoinMarketCap data. The sudden dip wiped billions from the market, reflecting broader uncertainty about how new trade tensions could impact economic stability.
Ethereum (ETH) followed a similar trajectory, falling from $2,645 to a low of $2,537 before rebounding to $2,645. Meanwhile, the total crypto market cap shrank from $3.15 trillion to $3.10 trillion before recovering to $3.13 trillion.
The Crypto Fear & Greed Index fell to 43, down from 46, keeping it in “fear” territory for the past week. Investors appear uneasy about how new trade policies could impact the broader economy.
Trump Escalates Trade War With New Tariffs
Trump’s move extends his long-standing strategy of using tariffs to pressure trading partners. The 25% duties apply to all steel and aluminum imports, marking a fresh wave of protectionist policies. Speaking about the decision, Trump argued that other nations have been taking advantage of the U.S. for too long.
“If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump said, justifying the aggressive trade stance.
In addition to steel and aluminum, Trump has already imposed 25% tariffs on Canada and Mexico and 10% on Chinese imports earlier this month. However, the tariffs on Canada and Mexico were quickly granted reprieves of at least 30 days after retaliatory measures.
The trade tariffs directly impact Canada, Brazil, Mexico, and South Korea—some of the largest steel exporters to the U.S. The announcement has already drawn backlash, with China imposing $14 billion in retaliatory tariffs on American coal and liquefied natural gas.
European leaders are also pushing back. French President Emmanuel Macron criticized the move, warning that higher tariffs would “increase costs and create inflation in the U.S.” Trump, however, dismissed concerns, claiming the policies will boost domestic industries without hurting American consumers.
The crypto market reacted swiftly to Trump’s tariff announcement, with Bitcoin and Ethereum dipping before rebounding. While the immediate impact was temporary, ongoing trade tensions could fuel further volatility in the weeks ahead.
