Why XRP Is Sinking Today

XRP's (CRYPTO: XRP) valuation is moving lower in Thursday's trading amid big sell-offs for both cryptocurrencies and stocks. The cryptocurrency's price was down 4.7% over the previous 24 hours as of 3:15 p.m. ET. Meanwhile, Bitcoin (CRYPTO: BTC) was down 5.1% over the past day, and Ethereum (CRYPTO: ETH) was down 5.9%.

The Trump administration announced new tariffs at its "Liberation Day" event yesterday afternoon, and cryptocurrencies and stocks have seen big sell-offs in subsequent trading. XRP's token price is now down roughly 1% across 2025's trading.

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XRP's price is slumping following Trump's tariff announcements yesterday

At the White House yesterday, President Trump laid out his administration's next moves on the tariff front. On April 5, a 10% import tax will be applied to all foreign-sourced goods entering the country. Just four days later, an additional round of "reciprocal tariffs" on products from countries with which the U.S. has the largest trade deficits will be applied on top of the blanket 10% rate.

Investors are having a strong negative reaction to the news.

What's next for XRP?

While new tariffs are unlikely to have a major material impact on XRP's fundamentals, they're clearly curbing appetites for speculative, high-risk investments. The Trump administration's new import taxes look poised to have a disruptive impact on global trade. While these new tariffs are being implemented with the hopes of strengthening U.S. manufacturing and achieving other initiatives, investors could be facing more volatility in the near term.

Cryptocurrencies were once commonly touted as investment vehicles and payment methods that would help shelter investors from macroeconomic pressures and volatility, but macro trends have come to have a defining impact on crypto valuations as adoption has increased. For better or worse, the macroeconomic picture will continue to play a big role in shaping XRP's token price.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.