Bitcoin has dropped below $100,000 for the first time in six days following US President Donald Trump signing an executive order to impose import tariffs on goods from China, Canada, and Mexico.

The imposed tariffs have already triggered retaliation from the three countries, and the crypto industry is divided on how this will affect the broader market.

According to a Feb. 1 statement from the White House, “Trump is implementing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China.  Energy resources from Canada will have a lower 10% tariff.”

The statement said that “Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”

Tariffs could raise inflation, potentially leading to higher interest rates, which typically causes investors to move away from riskier assets like crypto and toward more traditional assets like bonds and term deposits.

The 3 countries were quick to retaliate

Shortly after Trump’s announcement, Canada’s Prime Minister Justin Trudeau announced in a press conference that he will be imposing a 25% tariff on $106.5 billion worth of US goods.

China’s Ministry of Commerce reportedly said it will be filing a complaint with the World Trade Organization (WTO) and “take corresponding countermeasures.”

Mexican President Claudia Sheinbaum said in a lengthy X post that she has instructed the Secretary of Economy to “implement plan B” which includes “tariff and non-tariff measures in defense of Mexico’s interests.”