Bitcoin price falls below $100,000 due to new U.S. import tariffs
Why Bitcoin got cheaper
The price of Bitcoin fell below $100,000 for the first time in six days after US President Donald Trump signed an executive order imposing import tariffs on goods from China, Canada, and Mexico.
According to Cointelegraph, Trump is introducing an additional 25% tariff on imports from Canada and Mexico, as well as a 10% tariff on goods from China. Meanwhile, energy resources from Canada will be subject to a lower 10% tariff.
The statement also noted that the president is taking decisive action to hold Mexico, Canada, and China accountable for their commitments to curb illegal immigration and prevent the flow of fentanyl and other drugs into the United States.
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The new tariffs could trigger inflation, which, in turn, might lead to higher interest rates. This usually prompts investors to shift away from riskier assets like cryptocurrencies and move toward traditional financial instruments such as bonds and term deposits.
Retaliatory measures
Shortly after Trump's announcement, Canadian Prime Minister Justin Trudeau stated at a press conference that Canada will impose a 25% tariff on US goods worth $106.5 billion.
China’s Ministry of Commerce announced its intention to file a complaint with the World Trade Organization (WTO) and take corresponding countermeasures.
Meanwhile, Mexican President Claudia Sheinbaum posted a lengthy statement on X, saying that she has instructed the Minister of Economy to implement "Plan B", which includes both tariff and non-tariff measures to protect Mexico’s interests.
Following these retaliatory moves, Bitcoin dropped below the psychological $100,000 level for the first time since January 27, falling to $99,111. According to CoinGlass, approximately $22.7 million worth of long positions were liquidated in the four hours leading up to this event.
Meanwhile, Trump claims that DeepSeek is saving money for American tech giants.
