Trump's Tariff Threats to Canada Amidst Bitcoin Stability at $89K
The cryptocurrency sector has responded with caution following U.S. President Donald Trump's announcement of potential 100% tariffs on Canadian imports if Canada fortifies its trade ties with China. This statement introduces new geopolitical risks to global markets.
Trump's Tariff Warning to Canada Over China Relations
In a post on Truth Social, Trump warned Canada against becoming a conduit for Chinese goods entering the U.S. He emphasized that deeper economic cooperation between Canada and China could expose Ottawa to Beijing's influence, jeopardizing local industries.
Trump further asserted that any trade agreement between Canada and China would trigger a 100% tariff on Canadian goods in the U.S., posing a significant economic and national security dilemma.
Crypto Prices Remain Steady
Despite increasing trade discussions between Canada and China, the crypto market showed minimal price movement. However, institutional activity persists. Cathie Wood's Ark Invest has filed for a crypto index ETF incorporating Bitcoin and various altcoins like ETH, SOL, XRP, and ADA.
Bitcoin hovered around $89,300 after slight fluctuations, as per TradingView data. Ethereum was trading near $2,948, reflecting modest daily gains with intraday variability.
Among other leading altcoins, XRP was priced at approximately $1.91 with no significant hourly change. BNB and Solana showed mixed intraday performance, while TRON exhibited short-term growth but weaker 24-hour performance.
Balancing Trade Risks and Market Liquidity
The subdued crypto market response indicates that traders view Trump's tariff threats as policy news rather than an economic shock. This comes amid ongoing regulatory uncertainties, highlighted by the postponement of the crypto market bill markup due to Senate session cancellations caused by snowstorms. Traditionally, trade warnings impact traditional markets first, potentially affecting crypto if tariff tensions escalate.