Crypto Market’s Uncertainty Amid Trump’s 25% Steel and Aluminum Tariff Move

Donald Trump’s victory over Kamala Harris Kamala Harris Kamala Harris is an American politician attorney, and currently serving as vice president of the United States. She is the first female vice president and the highest-ranking female politician in the U.S. Kamala was Born in Oakland, California, and graduated from Howard University with a degree in political science and economics, and later pursued her law degree from the University of California, Hastings College of the Law. As a politician, she implemented stricter laws, the DREAM Act, and federal legalization of cannabis, healthcare, and taxation reform. Harris secured enough non-binding support from delegates to become the speculative nominee of the Democratic Party. Vice President was considered by most crypto enthusiasts to be a turning point in the journey of the crypto industry. It was expected that Trump would introduce several crypto-friendly policies. To an extent, the Trump administration has managed to live up to these general expectations. However, some recent economic policies of his administration, related to tariffs, have indirectly affected the cryptocurrency sector. The big question now is: Has the crypto industry really benefited from the political change in the US?

The newly inducted Trump administration on February 9 jolted the global economy with a new tariff move. More importantly, this time, it targeted the global aluminum and steel industry. It imposed a 25% tariff on aluminium and steel.   

According to the International Trade Administration’s Global Steel Trade Monitor report, Canada, Brazil, Mexico, South Korea, Russia, Japan, Germany, Turkey, Vietnam, and Taiwan are the top ten countries that export steel to the US. Meanwhile, as per the same report, Canada, Mexico, China, Italy, India, Belgium, Malta, Brazil, Germany, and South Korea are the top countries that import steel from the US.

Yesterday, the total market cap of the cryptocurrency market declined sharply by around 0.32%. However, lately, the market has shown strong signs of recovery. Today, the market has grown by nearly 0.64%. 

Notably, the Crypto Fear and Greed Index has decreased from 46 to 43, indicating that the recovery has failed to make any positive impact on investor confidence. 

Bitcoin and Ethereum Price Fluctuations 

Between February 8 and 9, the Bitcoin market declined by at least 0.040%. More importantly, at one point on February 9, the BTC price reached as low as $94,715.39. Today, the Bitcoin price has seen a surge of 0.51%. 

Yesterday, the Ethereum market slipped by approximately 0.20%. The market has not yet fully recovered from the correction, although today the Ethereum price has increased by 0.12%.

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Trump’s Tariffs on Canada, Mexico and China and Their Market Impact 

This is not the first time that Trump has sent shockwaves through the global market with a tariff announcement. 

On February 1, the Trump administration imposed a 25% tariff on Canada and Mexico, and a 10% tariff on China.  On February 3, the administration paused the tariff action that it had initiated against Canada and Mexico. 

Meanwhile, the administration’s action against China escalated to a severe trade war, with China imposing a counter-tariff of 15% on selected US goods. 

It is possible that the administration could reinstate its tariff policy against its neighbours after the offered 30-day pause ends.

At the start of February 1, the crypto market’s total market cap was at $3.45T. On February 2, it touched as low as 3.19T. Although on February 3 it rebounded to $3.29T, between February 4 and 7, the market slipped from $3.29T to 3.09T. The market has not yet recovered from the correction. Currently, the market cap stands at $3.12T.    

Potential Future Tariffs and Crypto Market Risks 

Reports suggest that the Trump administration may impose similar tariffs on semiconductors, oil, gas and copper. 

There are also rumours that the administration may impose a tariff on the European Union as well.

If Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President continues with his tariff plans, the crypto market, especially Bitcoin and Ethereum, could face significant impacts.