President Donald Trump’s recent announcement of a significant tariff increase on Canadian steel and aluminum has sent shockwaves through Bitcoin and other financial markets. The tariff has surged from 25% to 50%, with Trump attributing this move to Ontario’s 25% tariff on U.S. electricity.
In a statement, Trump revealed that the new tariffs will be implemented on March 12. He called on Canada to abolish its dairy tariffs, which range from 250% to 390%, and warned of further tariffs on Canadian automobiles by April 2.
Trump criticized Canada’s longstanding dairy tariffs, labeling them as “outrageous,” and threatened to declare a national emergency regarding electricity in response to what he described as an “abusive threat” from Canada.
Impact of Tariff Disputes
Furthermore, Trump declared that if Canada does not eliminate these “egregious” tariffs, the U.S. would drastically increase duties on Canadian automobile imports starting April 2, claiming this could effectively “shut down the automobile manufacturing business in Canada.”
In a bold statement, Trump suggested that the solution could be for Canada to join the U.S. as the “Fifty-First State,” thereby eliminating all tariffs completely.
Following the announcement, markets reacted swiftly, with Bitcoin (BTC) experiencing a decline of 4.2%, falling below $80,000, while the Dow Jones Industrial Average plummeted nearly 600 points. Investors were unsettled by the escalating trade tensions and the administration’s indication that no new Bitcoin purchases were planned for the national strategic reserve.
As of the latest update, Bitcoin has rebounded slightly, rising above $81,000 amidst ongoing market volatility.
This tariff dispute is part of a broader pattern following previous tariffs imposed by Trump on Canadian and Mexican goods, which have prompted pushback from both countries citing violations of trade agreements.
