Trump’s 500% Tariff Threat on Russian Oil Buyers Sparks Crypto Market Crash Fears

Geopolitical shockwaves hit digital assets as former President Trump proposes crushing 500% tariffs—sending Bitcoin and altcoins into a tailspin.

Markets react to dollar dominance play

Crypto traders scramble to hedge against potential liquidity crunches as Trump's protectionist move threatens to strengthen the USD—historically kryptonite for risk assets. Stablecoin arbitrage windows yawn wide while DeFi yields spike on volatility bets.

Goldman analysts whisper 'I told you so' through $8,000 suits

Traditional finance vultures circle as crypto's correlation to macro risks rears its ugly head again. 'Decentralized' doesn't mean detached when Uncle Sam starts economic warfare—especially not with 500% leverage on geopolitical tensions.

Tariff trade war is once again escalated after President Trump signed off on a bipartisan bill imposing at least 500% tariff on countries purchasing Russian oil, including India, China, and Brazil

The impact was immediate, with the crypto market dropping 3.4%. Is this just a short-term shock, or the start of a much bigger crypto sell-off?

Trump’s 500% Tariff Bill Targets Russian Oil Buyers

According to the public statements, TRUMP has approved a major bipartisan bill that allows tariffs of at least 500% on goods imported from countries purchasing Russian oil, gas, or uranium. 

The policy directly targets major BRICS nations such as India, China, and Brazil, aiming to cut off funding linked to Russia’s war efforts.

Republican Senator Lindsey Graham confirmed the MOVE on social media, stating that President Trump approved the bill after a high-level meeting. 

Graham said the bill is designed to “punish countries buying cheap Russian oil that fuels Putin’s war machine,” adding that a bipartisan vote could happen as early as next week.

Crypto Market Reacts Immediately

The crypto market has not waited for the bill to pass fully. The impact is already visible. Over the last 24 hours, the total crypto market capitalization has dropped to $3.19 trillion, marking a 3.23% decline. 

Bitcoin and other large-cap cryptocurrencies have fallen between 3% and 8%, signaling rising risk aversion among investors.

This reaction mirrors previous tariff-related fears. Last year, in October 2025, when President Trump threatened extreme tariffs on Chinese imports, crypto markets saw nearly $19 billion in liquidations in a day. 

At that time, Bitcoin plunged from its all-time high near $126,000 to below $100,000, showing how sensitive digital assets are to global trade shocks.

Indian Stock Market Drops To Weekly Low

Traditional markets are also flashing warning signs. India’s benchmark NIFTY fell to a new weekly low, with all major sectors trading in the red after news of the tariff mandate. 

This matters for crypto because sharp sell-offs in emerging markets often spill into risk assets globally, including digital currencies.

Will Crypto See Another Major Crash?

Whether this dip turns into a bigger crash depends on how strict the tariffs become and how other countries respond. 

If trade tensions last longer, investors may move their money into safer assets, which could put more pressure on crypto prices.

For now, the market is clearly on edge, bitcoin is trading around $90,234, while Ethereum, XRP, Solana, and others are facing 4% to 10% losses.