US President Donald Trump has signed long-threatened tariffs on Mexico, Canada, and China, sparking a trade war that has sent meme coins tumbling worldwide. The biggest meme coins, including dogecoin and Shiba Inu, have lost around 14% each, with others like Pudgy Penguins dropping 13%. Official Trump, Trump’s own meme coin, has fallen by 15% to $17.
The drop began after Trump signed the tariffs order on Saturday evening, which imposes a 25% tariff on imports from Mexico and Canada, as well as a 10% duty on China. The US trades around $1.6 trillion with these countries.
Crypto expert James Davies attributed the decline to investors becoming risk-off due to the global political uncertainty surrounding the trade war. “Every coin that recently rallied through January has essentially handed back most of their gains,” he said. Bitcoin, however, has lost just 3% so far.
Source: https://www.cnbc.com/2025/02/03/trump-coin-leads-tumble-in-meme-cryptocurrencies-as-tariffs-rock-global-markets.html