President Donald Trump’s recent announcement of a tariff hike on Canadian steel and aluminum—rising from 25% to 50% in response to Ontario’s 25% tariff on U.S. electricity—sent shockwaves through the Bitcoin and broader markets.
As per his statement on Truth Social, the new tariffs will begin on March 12. He urged Canada to eliminate dairy tariffs as high as 390% and cautioned that tariffs on Canadian automobiles could see significant increases by April 2.
In his remarks, President Trump condemned Canada’s longstanding dairy tariffs, which he described as “outrageous” and ranging from 250% to 390%. He threatened to declare a national emergency regarding electricity to combat what he termed Canada’s “abusive threat.”
‘Egregious’ tariffs
Trump further indicated that failure on Canada’s part to eliminate other “egregious” tariffs would lead to a substantial rise in tariffs on Canadian auto imports starting April 2. He claimed such measures could effectively “shut down the automobile manufacturing industry in Canada.”
Additionally, he suggested that “the only logical step is for Canada to become our beloved Fifty-First State, thus eliminating all tariffs and other barriers.”
Market reactions were swift; Bitcoin (BTC) dropped by 4.2%, sinking below $80,000, while The Dow Jones plummeted nearly 600 points. Investors were anxious about the escalating trade conflict and the administration’s announcement of no new Bitcoin acquisitions for the national strategic reserve.
At the time of writing, Bitcoin has recovered to above $81,000.
This latest tariff controversy follows Trump’s previous tariffs on goods from Canada and Mexico, and both countries have voiced their objections, claiming violations of trade agreements.