As Asia’s trading session kicked off, a significant sell-off swept through major cryptocurrencies like Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP, as markets digested the potential impact of a global trade war. By mid-morning in Hong Kong, Bitcoin had slipped 8%, trading just above $93,100, based on CoinDesk Indices data.

By the afternoon, Bitcoin showed signs of stabilizing around $93.9K, but other assets continued to feel the pressure. Ether was down nearly 20%, dipping below $2,500, while Solana fell 7%, trading at $193. XRP saw the largest decline, dropping 23% to $2.

The broader CoinDesk 20 Index, which tracks the largest digital assets, lost almost 17%, with Trump’s memecoin (TRUMP) also seeing a 12% drop. World Liberty Financial (WLFI), a crypto project supported by the Trump family, was hit by the market’s volatility, showing a 20% decline in its January investments, according to SpotOnChain data.

This market correction came after President Trump’s announcement of a 25% tariff on goods imported from Canada and Mexico. Critics quickly voiced concerns about the consequences of tariffs, with the Wall Street Journal’s editorial board calling it the “Dumbest Trade War in History.”

The European Union has vowed to retaliate strongly against any tariffs imposed on its member states, with Politico reporting a spokesperson emphasizing that tariffs cause economic disruption and inflation.

Meanwhile, the U.K. appears to have avoided the tariffs, with Trump suggesting a deal could be reached, as per BBC reports. On Truth Social, Trump dismissed his critics, claiming they were financially backed by China.