Crypto markets took a hit as U.S. President Donald Trump announced new tariffs on aluminum and steel, adding fuel to an intensifying U.S. trade war.
According to a Feb. 9 report by the Associated Press, Trump declared that all steel and aluminum imports into the U.S. would face a 25% tariff.
Additionally, he revealed plans for reciprocal tariffs on countries that impose import fees on U.S. goods.
“If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump stated.
The announcement triggered a temporary decline in crypto markets, causing widespread losses. However, the market has since shown signs of recovery.
Meanwhile, data from CoinMarketCap shows that Ether (ETH) has rebounded close to its pre-tariff announcement level. After dipping to a low of $2,537, it has recovered to $2,645. Bitcoin can be more movements.
Similarly, the total crypto market cap fell from $3.15 trillion to $3.10 trillion but has since bounced back to $3.13 trillion, according to CoinMarketCap.
The Crypto Fear & Greed Index, which gauges market sentiment for Bitcoin and other cryptocurrencies, has remained in fear territory for the past week, averaging 44 out of 100.
In its latest update on Feb. 10, the index recorded a fear rating of 43, down from 46 the previous day.
Trump has also announced plans to impose tariffs on the EU, superconductors, oil, gas, steel, and copper as part of his broader trade policy.
On Feb. 1, he introduced 25% tariffs on key trading partners Canada and Mexico, along with 10% tariffs on China, triggering a sharp decline in both stock and crypto markets.
Estimates differ, but Bybit co-founder and CEO Ben Zhou speculated that liquidations may have totaled between $8 billion and $10 billion.
The crypto market saw a recovery and found lots of bitcoin price movements, after the planned tariffs on Mexico and Canada were paused for 30 days on Feb. 3. However, Trump has not ruled out reinstating the tariffs once the pause period ends.
