The tariffs would be imposed on all goods entering the US if Canada makes a deal with China.
Tension between the two North American giants continues to escalate as US President Donald Trump has just warned on his social media platform that he is prepared to tax its northern neighbor with a 100% tariff if Canada makes a deal with China.
Given the historical impact of rates or even their threat on BTC, it is worth keeping an eye on the asset’s price movements over the next 48 hours.
A few minutes ago, Trump brought it up to Truth Social warn Canada on the aforementioned 100% tariffs if Prime Minister Mark Carney makes a deal to become a ‘drop-off port’ for China to ‘send goods and products to the United States’. He went even further, claiming that such a deal with the Asian giant could be devastating to Canada’s economic prosperity:
“China will eat Canada alive and devour it completely, including the destruction of their businesses, social structure and general way of life.”
The first reports about this ‘new strategic partnership’ between Canada and China appeared about a week ago. The provisional trade agreement objectives to reduce tariffs, including a commitment to import nearly 50,000 electric vehicles from China at preferential rates.
Before today’s threat, Trump withdrew his invitation to Canada to join his Board of Peace initiative after claiming during his Davos speech that Canada is “alive because of the United States.”
Bitcoin’s price has been severely affected by even the mere threat of US tariffs against other countries, especially if they are believed to be allied countries. Recall that last week, after Trump announced new tariffs against several EU states, BTC fell from over $95,000 to $87,000 from Monday to Wednesday.
Minutes ago, the price briefly fell a more modest $500 after Trump’s statement on Truth Social, but more volatility could be expected Monday morning when other financial markets open.
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