Trump’s Tariff Threats Rattle Markets as Bitcoin, XRP, and Solana Slide

Risk assets like Bitcoin (BTC), XRP, and Solana (SOL) dipped after U.S. President Donald Trump reignited trade tensions, threatening heavy tariffs on allies. In a Truth Social post during early Asian hours Thursday, Trump warned of “large scale Tariffs” on the EU and Canada if they collude economically against the U.S.

He wrote, “If the European Union works with Canada to do economic harm to the USA... tariffs far larger than currently planned will be placed.” In another post, he added, “Liberation day in America is coming... America first!”

This rhetoric follows earlier 25% tariffs on Canadian and Mexican imports, and a 20% levy on Chinese goods, citing national security and drug trafficking concerns. Investors now fear broader economic instability, with tariffs expected to stoke inflation and pressure the Federal Reserve into maintaining a tighter monetary stance. A stronger U.S. dollar could also weigh on Bitcoin, pushing investors toward safer assets like gold or cash.

Crypto markets reacted with a brief sell-off: XRP and SOL dropped 2%, while DOGE erased earlier gains. ETH and BNB showed little movement. However, Sui Network’s SUI surged 7% ahead of Walrus Network’s mainnet launch, drawing bullish sentiment from traders.

Despite short-term volatility, some analysts see opportunity. HashKey Capital’s Jupiter Zheng pointed to Asia’s rising crypto momentum, citing supportive regulations and institutional growth. “The next leg of the bull market may find footing in Asia,” he said.

BTSE’s Jeff Mei remained optimistic, noting crypto’s recovery amid stock market declines. He suggested the worst may be over for digital assets, especially with possible Fed rate cuts ahead.

Traders now await the March 28 Personal Consumption Expenditure (PCE) data, which could influence the Fed’s next move and set the tone for crypto’s trajectory.