Crypto Crash Deepens After Trump Tariffs Spook Markets

Crypto Crash Deepens As Trump Tariffs On Canada, Mexico And China Ignite Trade War

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Updated: 03 February 2025

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The crypto crash deepened after US President Donald Trump slapped swingeing trade tariffs on Mexico, Canada and China.

The crypto market slumped more than 10% overall in the past 24 hours, with market leaders Bitcoin (BTC) and Ethereum (ETH) both suffering heavy losses. Bitcoin plunged more than 6% to trade below the psychological $100K level at $94,035.62 as of 2:06 a.m. EST.

The largest altcoin by market cap, ETH, plummeted over 19% to trade at $2,498.05. The rest of the top 10 largest cryptos all suffered 24-hour losses as well.

Cardano (ADA) took the largest blow in the top 10 list after its price plummeted more than 23%. SPX6900 (SPX) was the biggest loser overall among major cryptos by market cap following its 28% implosion.

The meme coin sector plummeted 18.2% to a market cap of $75 billion, according to CoinGecko, with Dogwifhat (WIF) the biggest loser among the top 10 meme coins with a 26.6% loss.

Trump Starts Trade War With Long-Threatened Tariffs, Triggering Crypto Crash

Trump imposed a 25% additional tariff on imports from both Canada and Mexico, according to a Feb. 1 statement. He also imposed a 10% additional tariff on China imports.

The tariffs are part of a broader effort to “hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into” the US, the statement said.

pic.twitter.com/SWZtSm6NMX

— Donald J. Trump (@realDonaldTrump) February 1, 2025

Countries Retaliate Against New US Tariffs

It did not take long for the countries to retaliate. Canada’s Prime Minister Justin Trudeau announced that he will also be imposing a 25% tariff on the $106.5 billion worth of US goods the country imports.

China’s Ministry of Commerce said it will file a complaint with the World Trade Organization and will also be taking “corresponding countermeasures.” Similarly, Mexican President Claudia Sheinbaum said in a Feb. 2 post on X that she has told the Secretary of Economy to implement “tariff and non-tariff measures in defense of Mexico’s interest.”