Dogecoin Rises, XRP Falls as Trump Threatens Heavier Tariffs

President Donald Trump has warned of significantly higher tariffs on the European Union and Canada if they take actions that could negatively impact the U.S. economy. This move could introduce uncertainty in financial markets, including the crypto sector.

Key Points:

• President Donald Trump has warned of higher tariffs on the European Union and Canada if they take actions that could harm the U.S. economy, potentially adding volatility to the crypto market.

• While Asian trading hours saw a brief sell-off, some analysts believe pro-crypto policies and regional developments could help support bitcoin prices, despite challenges in the U.S.

• Traders are focusing on the upcoming Personal Consumption Expenditure (PCE) data, set for release on March 28, as it plays a key role in shaping the Federal Reserve's interest rate decisions.

Risk assets like Bitcoin (BTC), XRP (XRP), and Solana (SOL) are drawing attention again after President Donald Trump issued a warning about imposing even higher reciprocal tariffs if other nations attempt to harm the U.S. economy.

In a Truth Social post during early Asian trading hours on Thursday, Trump stated:
"If the European Union works with Canada in order to do economic harm to the USA, large-scale tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!"

"Liberation day in America is coming soon," Trump declared in a separate post. "For years, we’ve been taken advantage of by almost every country—both allies and adversaries. But those days are over—America first!"

His remarks follow recent reports suggesting that concerns over tariffs may have been exaggerated, with the overall impact expected to be less severe than initially feared.

Earlier this month, Trump implemented 25% tariffs on imports from Canada and Mexico and a 20% levy on Chinese goods, citing national security risks tied to immigration and fentanyl trafficking. Now, with the European Union and Canada in his sights, markets could be bracing for further volatility.

Tariffs inherently disrupt economic stability, driving up the cost of imported goods, fueling inflation, and pressuring central banks like the Federal Reserve to respond with tighter monetary policy.

For Bitcoin (BTC) and other cryptocurrencies, such moves could introduce short-term downside risk. The crypto market often follows equities, which tend to struggle during periods of trade uncertainty. Additionally, a stronger U.S. dollar, supported by tariff-driven capital flows, may further weigh on BTC prices as investors seek safer assets like gold or cash.

Trump’s post dampened bullish sentiment in Asian trading hours, triggering a brief sell-off in major cryptocurrencies. XRP and Solana (SOL) dipped 2%, while Ethereum (ETH) and BNB Chain’s BNB remained largely unchanged. Dogecoin (DOGE) erased earlier gains from a 3.5% rally.

SUI Gains Momentum Amid Market Uncertainty

Beyond the top 10 cryptocurrencies, Sui Network’s SUI surged 7% ahead of the Walrus Network's mainnet launch later Thursday. Walrus Network, a data availability protocol built on Sui, has fueled optimism among analysts, who remain bullish on the token's long-term prospects.

Asian Crypto Developments Could Offset U.S. Market Headwinds

While U.S. regulatory shifts create uncertainty, some analysts believe developments in Asia could serve as a catalyst for Bitcoin's next rally.

"As U.S. regulators begin easing restrictive policies, institutions in Asia are making significant moves—introducing new funds, products, and innovations backed by pro-crypto regulations in key regions," said Jupiter Zheng, partner at HashKey Capital, in a Telegram message.

Zheng suggests that Asia could emerge as the next major driver of crypto’s growth. "The next leg of the bull market may find its footing in Asia as the industry’s center for expansion," he added.

Jeff Mei, an executive at BTSE, shared a more optimistic perspective as of Thursday morning.

"Bitcoin and other cryptocurrencies have rebounded over the last few days, despite stock markets reacting negatively to President Trump’s auto tariff announcement. This suggests that the worst may be over for crypto this year," Mei stated. "As U.S. inflation concerns ease and we move closer to interest rate cuts, crypto prices could trend higher."

Meanwhile, traders are closely watching the upcoming Personal Consumption Expenditure (PCE) data, set for release on March 28. This key inflation metric will influence the Federal Reserve’s interest rate decisions, shaping market expectations for the months ahead.