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Crypto Continues Downtrend After Trump's Statement
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- @airdropdecks
The new actions of Trump and the US government are still creating insecurity in the crypto market, especially with regard to economic policies.
On Air Force One on February 9, former U.S. President Donald Trump announced a 25 percent tariff on all steel and aluminum imports into the United States, in addition to previous tariffs. This is seen as a major escalation in his trade policy.
Speaking to reporters on his way to the Super Bowl final in New Orleans, Trump said he would announce the plan on Monday, February 10.
In addition, on February 11 and 12, he will announce additional reciprocal tariffs, effective immediately, that apply to all countries and correspond to the tariffs they are charging on American goods. He declared: “If they tax us, we will tax them.”
According to data from the American Iron and Steel Institute, Canada, Brazil and Mexico are the largest steel suppliers to the United States, followed by South Korea and Vietnam. In the aluminum sector, Canada is the largest supplier, accounting for 79% of total U.S. imports in the first 11 months of 2024.
Not just targeting steel and aluminum exporting countries, Trump also mentioned Nippon Steel's (Japan) investment in the U.S. Steel (USA). He said the United States would allow the deal to take place but would not let the Japanese company take majority control.
Trump insists tariffs will help U.S. Steel thrived again, and rated the company as having a good leadership team. Nippon Steel has not yet commented on the statement.
Shortly after the announcement, the price of Bitcoin, which had just touched $100,000, fell 1.66%, to around $95,000. Ethereum is also down 3.6 percent, now trading at $2,550. The total crypto market capitalization accordingly fell 2.15% on the day.
Among the types of crypto assets, the memenoin on Solana is the hardest hit. The GMCI Solana Memes Index (GMSOLMEME) has fallen 10% over the past 24 hours, with major capitalization tokens such as Bonk, Dogwifhat and Gigachad all in a bearish trend.
The big altcoins are also not immune to negative impacts. The GMETH index, which tracks the top tokens on Ethereum, fell 3.33%, while the GMUSA index, which tracks the top tokens in the US, also fell 3.31%.
Trump's announcement marks a new escalation in the trade war, similar to last week's decision to impose tariffs on Canada and Mexico. Earlier, crypto also reacted negatively to the news, but later recovered when Trump announced a one-month tax delay after talks with the two countries' leaders.
