U.S. President Donald Trump has signed an executive order imposing additional tariffs on imports from Canada, Mexico, and China. The move prompted immediate retaliations from these countries, leading to a drop in cryptocurrencies, including Bitcoin, which fell below $100,000.
Tariffs and Economic Impact
Trump's tariffs include a 25% additional levy on imports from Canada and Mexico and 10% on Chinese imports. Aimed at stopping illegal immigration and drug trafficking, economists fear these actions may increase inflation and interest rates, driving investors away from riskier assets like cryptocurrencies.
Retaliation and the Crypto Market
Canada, China, and Mexico quickly responded to the tariffs. Canadian Prime Minister Justin Trudeau announced a 25% tariff on $106.5 billion worth of American goods. China filed a complaint with the WTO and plans countermeasures, while Mexico announced a 'Plan B,' including tariff and non-tariff measures. Amidst these developments, Bitcoin fell to $99,540.
Experts' Opinions on the Crypto Market's Future
The crypto industry is divided over the impact of tariffs on the market. Dan Gambardello of Crypto Capital Venture dismissed the notion that Trump's tariffs ended the bull cycle. Meanwhile, Jeff Park of Bitwise Invest noted that a prolonged tariff war might benefit Bitcoin in the long term. Cinnaeamhain Ventures' Adam Cochran expressed skepticism, warning of economic risks.
The divided opinions in the crypto industry underscore the uncertainty about the market's future. Rising inflation and interest rates may affect investment strategies, leaving the market's response to new economic measures in question.
