America’s Tariff Wars Taking A Toll On Bitcoin And Other Crypto.

US President Donald Trump called on Americans to remain calm as the effect of his trades war sweeps through the crypto market and other sectors.

US President Donald Trump said the sweeping tariffs that he has imposed on Mexico, Canada and China may cause “some pain” for Americans, as global markets reflected concerns the levies could undermine growth and reignite.With a 25 per cent tariff on Canada and Mexico, and 10 per cent on China effective from Tuesday,

Trump kicked off his promise of protectionist trade policies, triggering a fresh trade war with America’s top three trade partners that are also the largest contributors to its nearly $1 trillion trade deficit.

Major cryptocurrencies saw a slide on Monday, as a potential fallout of the fresh tariffs announced by the United States on some of its allies, with investors fearing an impending escalation in global wars and looking to move out of risky assets. Bitcoin was at a three-week low and ether at its lowest since September.

Since then, both Canada and Mexico have announced retaliatory tariffs on the USA, triggering concerns of a full-blown trade war. China has said it will file a lawsuit against the tariffs. Trump has also signalled that new tariffs on the European Union will “definitely happen”

The Impact On Cryptocurrencies

Trump’s announcement of the tariffs came on a Saturday, which is a market holiday for most trading instruments, except for cryptocurrencies, which many trade throughout the year. The fall in the digital currencies signifies that an uncertain trade environment could dent the rising crypto story, which has so far been the case under Trump’s Presidency.

Bitcoin fell to around $94,000 Monday morning, even touching a three-week low of $91,000. This is a significant fall after the coin touched a record high of more than $109,000 on January 20, when Trump became President.

Furthermore, Memecoins also bled profusely. Donald Trump token dipped by close to 12 per cent, and  his wife’s Melania was down more than 13 per cent according to CoinMarketCap. Dogecoin was down more than 24 per cent over yesterday.

Memecoins which are highly volatile cryptocurrency inspired by popular internet or cultural trends. They carry no intrinsic value but can soar, or plummet, in price. They are indicators of retail investors’ interest in cryptocurrency, demonstrating their risk appetite.

Crypto surge under Trump

Investors predicted that Bitcoin would surge once Donald Trump becomes President as his entire campaign featured pro-crypto messages. It was also anticipated that having Elon Musk , who has been a long time advocate for cryptocurrency as a key adviser, could further bolster investors’ belief in bitcoin, and other digital virtual assets, even if concerns around conflict of interest remain.

Additionally the trade war has triggered many things ,Canada said it will take legal action under the relevant international bodies to challenge the tariffs.

Prime Minister Justin Trudeau also encouraged Canadians to boycott their long-time ally after ordering retaliatory tariffs against $155 billion of US goods. This is affecting both the stock and crypto market .