In a move that has sparked concerns of a trade war, the US president has announced the implementation of tariffs on imports from Canada, Mexico, and China, effective immediately. The tariffs, set at 25% for Canada and Mexico and 10% for China, have been imposed in an effort to curb the influx of illicit opioids into the US.
As traditional markets remain closed for the weekend, the cryptocurrency market is bearing the brunt of the risk-off reaction, with bitcoin experiencing a 2% decline and struggling to stay above $100,000. Altcoins, including ether, XRP, and solana, have fared even worse, with losses ranging from 6% to 8%.
The CoinDesk 20 Index, a broad market gauge, has also declined by 4.8%. The White House has stated that there will be no exemptions to the tariffs, which will remain in place until the US is satisfied that the affected countries have stopped the flow of fentanyl into the country.
The move has been met with resistance from Canada, with outgoing Prime Minister Justin Trudeau warning of a forceful and immediate response if the US proceeds with the tariffs.