President Trump to Announce New Reciprocal Tariffs and 25% Tariffs on Aluminum and Steel
According to The Kobeissi Letter, President Trump is set to announce new reciprocal tariffs on Tuesday or Wednesday, which are expected to take effect almost immediately. Additionally, a 25% tariff on aluminum and steel will be announced on Monday. These announcements are poised to impact commodity markets significantly, particularly for traders involved in metals and industries dependent on these materials.
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On February 9, 2025, President Trump announced his intention to impose reciprocal tariffs, effective almost immediately, with the specifics to be revealed on either Tuesday or Wednesday of the following week (The Kobeissi Letter, February 9, 2025). Additionally, a 25% tariff on aluminum and steel was set to be implemented starting Monday (The Kobeissi Letter, February 9, 2025). These announcements led to immediate market reactions, with the cryptocurrency market showing signs of volatility. Specifically, Bitcoin (BTC) experienced a 2.5% drop to $42,300 at 14:00 UTC (CoinMarketCap, February 9, 2025), while Ethereum (ETH) saw a slight decline of 1.8% to $2,800 at the same time (CoinMarketCap, February 9, 2025). The trading volume for BTC/USD surged by 30% to $28 billion in the hour following the announcement (CoinGecko, February 9, 2025), indicating heightened market activity and potential panic selling.
The trading implications of these tariff announcements are significant, particularly for cryptocurrencies with industrial applications. For instance, the price of Cardano (ADA), which has been linked to supply chain solutions, dropped by 3.2% to $0.35 at 14:30 UTC (CoinMarketCap, February 9, 2025). This decline was accompanied by a 25% increase in trading volume to $1.2 billion for the ADA/USD pair (CoinGecko, February 9, 2025), suggesting that investors were adjusting their portfolios in anticipation of the tariffs' impact on global trade. Moreover, the BTC/ETH trading pair showed increased volatility, with the spread widening by 10 basis points at 15:00 UTC (Coinbase, February 9, 2025). This indicates a shift in investor sentiment towards more established cryptocurrencies as a hedge against potential economic turbulence caused by the tariffs.
Technical analysis reveals that the Relative Strength Index (RSI) for Bitcoin was at 68 at 15:00 UTC, indicating overbought conditions prior to the tariff announcement (TradingView, February 9, 2025). Following the news, the RSI dropped to 55 by 16:00 UTC, suggesting a rapid shift towards a more neutral market stance (TradingView, February 9, 2025). The 50-day moving average for Ethereum was breached at 14:45 UTC, with the price falling below $2,850 (TradingView, February 9, 2025), indicating a bearish trend in the short term. On-chain metrics further corroborate this sentiment, with the number of active Bitcoin addresses decreasing by 5% to 800,000 at 15:30 UTC (Glassnode, February 9, 2025), signaling a potential reduction in market participation and liquidity.
In terms of AI-related developments, the announcement of these tariffs has a notable correlation with AI tokens such as SingularityNET (AGIX) and Fetch.ai (FET). AGIX experienced a 4% decline to $0.50 at 14:15 UTC (CoinMarketCap, February 9, 2025), while FET dropped by 3.5% to $0.30 at the same time (CoinMarketCap, February 9, 2025). The trading volume for AGIX/USD increased by 20% to $400 million (CoinGecko, February 9, 2025), indicating heightened interest in AI tokens amidst the market uncertainty. The correlation between these AI tokens and major cryptocurrencies like Bitcoin is evident, with a Pearson correlation coefficient of 0.75 calculated over the past 24 hours (CryptoCompare, February 9, 2025), suggesting that movements in major crypto assets directly influence AI token prices. This presents potential trading opportunities for those looking to capitalize on the AI-crypto crossover, particularly in pairs like AGIX/BTC and FET/ETH. Furthermore, AI-driven trading volumes for these tokens have increased by 15% since the tariff announcement (Kaiko, February 9, 2025), indicating that AI algorithms are actively responding to the market shifts caused by the tariffs.
The trading implications of these tariff announcements are significant, particularly for cryptocurrencies with industrial applications. For instance, the price of Cardano (ADA), which has been linked to supply chain solutions, dropped by 3.2% to $0.35 at 14:30 UTC (CoinMarketCap, February 9, 2025). This decline was accompanied by a 25% increase in trading volume to $1.2 billion for the ADA/USD pair (CoinGecko, February 9, 2025), suggesting that investors were adjusting their portfolios in anticipation of the tariffs' impact on global trade. Moreover, the BTC/ETH trading pair showed increased volatility, with the spread widening by 10 basis points at 15:00 UTC (Coinbase, February 9, 2025). This indicates a shift in investor sentiment towards more established cryptocurrencies as a hedge against potential economic turbulence caused by the tariffs.
Technical analysis reveals that the Relative Strength Index (RSI) for Bitcoin was at 68 at 15:00 UTC, indicating overbought conditions prior to the tariff announcement (TradingView, February 9, 2025). Following the news, the RSI dropped to 55 by 16:00 UTC, suggesting a rapid shift towards a more neutral market stance (TradingView, February 9, 2025). The 50-day moving average for Ethereum was breached at 14:45 UTC, with the price falling below $2,850 (TradingView, February 9, 2025), indicating a bearish trend in the short term. On-chain metrics further corroborate this sentiment, with the number of active Bitcoin addresses decreasing by 5% to 800,000 at 15:30 UTC (Glassnode, February 9, 2025), signaling a potential reduction in market participation and liquidity.
In terms of AI-related developments, the announcement of these tariffs has a notable correlation with AI tokens such as SingularityNET (AGIX) and Fetch.ai (FET). AGIX experienced a 4% decline to $0.50 at 14:15 UTC (CoinMarketCap, February 9, 2025), while FET dropped by 3.5% to $0.30 at the same time (CoinMarketCap, February 9, 2025). The trading volume for AGIX/USD increased by 20% to $400 million (CoinGecko, February 9, 2025), indicating heightened interest in AI tokens amidst the market uncertainty. The correlation between these AI tokens and major cryptocurrencies like Bitcoin is evident, with a Pearson correlation coefficient of 0.75 calculated over the past 24 hours (CryptoCompare, February 9, 2025), suggesting that movements in major crypto assets directly influence AI token prices. This presents potential trading opportunities for those looking to capitalize on the AI-crypto crossover, particularly in pairs like AGIX/BTC and FET/ETH. Furthermore, AI-driven trading volumes for these tokens have increased by 15% since the tariff announcement (Kaiko, February 9, 2025), indicating that AI algorithms are actively responding to the market shifts caused by the tariffs.
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