What are Trump's tariffs?

In early February 2025, U.S. President Donald Trump imposed tariffs on Mexico, Canada, and China. The reason for the tariffs stemmed from national security concerns and trade deficits with the affected nations. The tariffs levied 25% taxes on Mexico and Canada, and 10% taxes on Chinese imports.

What are the affects of the Trump tariffs on crypto?

The Trump tariffs sent equities and cryptocurrency markets in an uproar. The total cryptocurrency market cap lost about $300 billion worth of value overnight. The Dow futures, S&P 500 futures, and Nasdaq futures lost hundreds of points as well.

How will the Trump tariffs affect future cryptocurrency prices?

Cryptocurrencies are not connected to any physical goods or supply chain constraints in the physical world. Therefore, tariffs have no direct effect on the price of cryptocurrency. However, they can have an indirect effect on crypto prices due to crypto being perceived as a risk asset or because of liquidity crunches stemming from the fallout of the tariffs.