On Air Force One on February 9, former US President Donald Trump announced that he would impose a 25% tariff on all steel and aluminum imports into the US, in addition to the tariffs previously in place. This is considered a major escalation in his trade policy.
Speaking to reporters on his way to the Super Bowl final in New Orleans, Trump said he would announce the plan on Monday, Feb. 10.
In addition, on Feb. 11 and 12, he will announce additional reciprocal tariffs, effective immediately, that apply to all countries and correspond to the tariffs they are imposing on U.S. goods. "If they tax us, we're going to tax them," he declared.
According to data from the American Iron and Steel Institute, Canada, Brazil and Mexico are the largest suppliers of steel to the United States, followed by South Korea and Vietnam. In the aluminum sector, Canada is the largest supplier, accounting for 79% of total US imports in the first 11 months of 2024.
Not only targeting steel and aluminum exporting countries, Trump also mentioned Nippon Steel's investment in U.S. Steel. He stated that the U.S. would allow the deal to take place but would not let the Japanese company take majority control.
Trump affirmed that the tariffs will help U.S. Steel thrive again, and assessed that the company has a good leadership. Nippon Steel has not yet commented on this statement.
U.S. tariffs on the top 15 partners. Source: WTO.
Immediately after the announcement, the price of Bitcoin, which had just touched $100,000, fell by 1.66%, to around $95,000. Ethereum also plummeted 3.6%, currently trading at $2,550. The total crypto market capitalization accordingly fell by 2.15% on the day.
BTC price in the 4H frame on Binance. Source: Tradingview.
Among the crypto asset classes, memecoins on Solana are the hardest hit. The GMCI Solana Memes (GMSOLMEME) index has fallen by 10% in the last 24 hours, with large-cap tokens such as Bonk, Dogwifhat, and Gigachad all in a downtrend.
Major altcoins are also not immune to negative impacts. The GMETH Index, which tracks the top tokens on Ethereum, fell 3.33%, while the GMUSA Index, which tracks the top tokens in the US, also fell 3.31%.
The GMCI index fell sharply. Source: The Block.
Trump's announcement marks a new escalation in the trade war, similar to last week's decision to impose tariffs on Canada and Mexico. Previously, crypto also reacted negatively to the news, but then recovered when Trump announced a one-month tax delay after talks with the leaders of the two countries.
