Crypto markets stumbled as US President Donald Trump announced tariffs on aluminum and steel — the latest salvo in an escalating US trade war. 

Trump said that any “steel coming into the United States” and aluminum will be hit with a 25% tariff, according to a Feb. 9 report by the Associated Press.

He also said that the White House would launch reciprocal tariffs on countries levying import fees on US goods.

“If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump said.

Following the tariff announcement, crypto markets dipped temporarily, with bleeding across the board. However, there has since been a steady recovery.

Bitcoin 

BTCUSD

 crossed back over $97,000 after dropping to $94,000 briefly, according to CoinMarketCap.

Meanwhile, CoinMarketCap data shows Ether ETHUSD has also returned to nearly the same level it was before the tariff announcement, reaching a low of $2,537 but has since climbed back to $2,645.

At the same time, the total crypto market cap dropped from $3.15 trillion down to $3.10 trillion. It has since recovered to $3.13 trillion, according to CoinMarketCap.

The Crypto Fear & Greed Index, which measures market sentiment for Bitcoin and other cryptocurrencies, has been stuck in fear territory for the last week, clocking an average score of 44 out of 100.

The latest Feb. 10 update has also registered a fear rating, with a score of 43, down from 46 the previous day.

Trump has stated other plans to introduce tariffs on the EU, superconductors, oil, gas, steel and copper.

On Feb. 1, Trump launched tariffs of 25% against major trading partners Canada and Mexico and 10% on China, crashing both stock and crypto markets.

Estimates vary, but Bybit co-founder and CEO Ben Zhou speculated that liquidations could have reached $8 billion to $10 billion.

The crypto market eventually rebounded after the planned tariffs on Mexico and Canada were paused on Feb. 3 for 30 days. Trump, however, hasn’t ruled out reinstating the levies once the pause period expires.