Image credit: The Byteline

Bitcoin took a hit after former U.S. President Donald Trump reignited his trade war playbook, announcing fresh tariffs on steel and aluminum.

The news briefly rattled the crypto market, sending Bitcoin down to $94,000 before it clawed its way back past $97,000.

The 25% tariffs, which Trump declared would apply to "any steel coming into the United States" along with aluminum, were part of a broader plan to slap reciprocal levies on countries charging high import fees on American goods. “If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” he said, as reported by the Associated Press.

Crypto markets reacted swiftly, with total market capitalization sliding from $3.15 trillion to $3.10 trillion. But much like Bitcoin, the broader market has since stabilized, recovering to $3.13 trillion. Ether, too, saw a temporary slump to $2,537 before bouncing back to $2,645.

Trump’s latest tariff move follows his earlier decision on Feb. 1 to hit key trade partners—Canada and Mexico—with 25% tariffs and China with 10%, which sent both stock and crypto markets tumbling. A temporary 30-day pause on the Canadian and Mexican levies helped markets regain some footing, but Trump has left the door open to reinstating them once the grace period ends.

Beyond metals, the former president has hinted at further trade battles, with potential tariffs targeting the EU, superconductors, oil, gas, steel, and copper. If history is any guide, markets will be watching closely—and bracing for volatility.