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Investing.com - Shares in cryptocurrency-linked stocks dropped on Monday, weighed down by a sell-off in digital assets that was sparked by U.S. President Donald Trump’s sweeping new tariffs.
Cryptocurrency prices tumbled after Trump slapped 25% import tariffs on traditional trading partners Canada and Mexico over the weekend. A tariff of 10% was also placed on goods incoming from China.
The moves raised concerns over larger global trade tensions, denting the appeal of riskier assets like cryptocurrencies and stocks exposed to digital assets. Coinbase (NASDAQ:COIN), as well as Riot Platforms (NASDAQ:RIOT), Bit Digital (NASDAQ:BTBT), and Marathon Digital Holdings (NASDAQ:MARA), all fell in premarket U.S. trading.
Meanwhile, Bitcoin, the world’s most popular digital token, dipped to a three-week low, sliding under the $100,000 level. Ethereum, the second-largest cryptocurrency by market capitalization, also declined by more than 15%.
The tariffs, which are due to come into effect on Tuesday, stand to fuel an escalating trade war, analysts have warned. Canada and Mexico have announced plans to roll out their own tariffs on U.S. goods, while China’s Ministry of Commerce intends to challenge the actions at the World Trade Organization.
Trump officials have not said what exact improvements would need to be seen in stemming the flow of illegal immigrants or the opiate fentanyl into the U.S. in order to remove the tariffs. Trump used these arguments as legal justification for employing economic emergency powers to introduce the levies.
Meanwhile, Trump has said that separate tariffs on the European Union would "definitely happen", although he did not specify when they would be implemented.
Along with the impact of the tariffs on market sentiment, some disappointment over a perceived lack of immediate moves by Trump to bolster the crypto industry have hit digital assets.
During his campaign for president, Trump vowed to back the sector, boosting hopes for an era of looser regulations following a period of scrutiny during the Biden administration. These expectations supported a spike in cryptocurrencies in recent months, with Bitcoin hitting an all-time peak when Trump was sworn in for his second term in the White House in January.