The crypto market has come under renewed pressure after President Donald Trump warned of additional reciprocal tariffs if other countries join forces to inflict economic damage on the United States.
“If the European Union and Canada join forces to inflict economic damage on the United States, we will impose drastic tariffs—significantly higher than previously planned—to protect the best friend these countries have ever had.”
In another message, he added:
“Liberation Day in America is just around the corner. For years, we were exploited by nearly every country in the world, both friends and enemies. But those days are over – America first!!!”
Trump‘s statements came at a time when earlier concerns about trade barriers had already subsided and a limited economic impact was expected. However, his new threats once again caused unrest in the financial markets.
Tensions continue to rise, especially since Trump had already imposed import tariffs of 25% on goods from Canada and Mexico and 20% on products from China earlier this month. These measures were aimed at immigration and the trade in fentanyl.
With the EU and Canada now also directly mentioned, markets are seriously anticipating new economic shocks.
Trade tensions weigh on crypto and Bitcoin prices
Tariffs undermine economic stability by making imports more expensive, fueling inflation, and putting pressure on central banks like the U.S. Federal Reserve to tighten monetary policy.
These are not positive signals for the crypto market. Cryptocurrencies often move in line with stock markets, which typically weaken when trade tensions escalate. Furthermore, a stronger U.S. dollar—driven by capital flows to traditional safe havens—can exert additional downward pressure on the Bitcoin price. In times of uncertainty, investors are more likely to turn to gold or cash than to risky assets like BTC.
During Asian trading hours, Trump’s statements dampened the previously positive market environment, leading to a short-term correction. XRP and SOL fell 2%, while Ether (ETH) and BNB remained largely stable. Dogecoin (DOGE) lost previous gains of 3.5%.
Thursday’s PCE data could be crucial for the market
Investors are now turning their attention to the release of Personal Consumption Expenditures (PCE) data on Thursday, March 28. This inflation data is considered an important indicator for future interest rate hikes by the U.S. Federal Reserve.
Higher-than-expected inflation could lead to the postponement of interest rate cuts, while weaker figures could provide scope for monetary easing – both scenarios could have a direct impact on the crypto market.
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