Financial markets are buzzing with anxiety as President Trump rolls out significant tariffs on major trading allies, a decision he claims is necessary due to the ongoing crisis surrounding illegal drug trafficking, particularly in relation to opioids.
Set to take effect on Tuesday, this move puts the cryptocurrency realm under severe pressure as the weekend unfolds.
Impact on Bitcoin and Altcoins
Staying true to his campaign promises, Trump has introduced a hefty 25% tariff on almost all imports from both Canada and Mexico, coupled with a 10% levy on goods from China.
In his Executive Order, the President underlined the devastating toll that illegal drugs take on American society and the consequent strain on healthcare and community resources.
With traditional markets shuttered over the weekend, Bitcoin (BTC) is feeling the heat, experiencing a 2% drop as it hovers just above the critical threshold of $100,000.
Just yesterday, it reached a high of $106,000.
Altcoins are faring even worse in this turbulent climate.
Prominent cryptocurrencies like ether (ETH), XRP, and solana (SOL) have plummeted by 6% to 8%.
The overall turmoil is reflected in the CoinDesk 20 Index, which has dropped by 4.8%.
White House Confirmation and Responses
A senior official from the White House confirmed that these tariffs will not have any exemptions and will remain in place until satisfactory measures to curb the flow of fentanyl into the United States are observed from the affected countries.
In light of these developments, former Canadian Prime Minister Justin Trudeau took to social media, voicing his concerns.
He highlighted Canada’s readiness to retaliate if the U.S. proceeds with the tariffs, emphasizing that no one involved wants to encounter such trade barriers.
Source: Coindesk
