Summary: Bitcoin slipped 4.2% after President Donald Trump announced new tariffs on Canadian steel and aluminum, raising them from 25% to 50%. The move comes in response to Ontario’s 25% tariff on U.S. electricity. Trump also demanded Canada remove its high dairy tariffs and warned of further tariffs on Canadian automobiles by April 2. Markets reacted sharply, with the Dow Jones dropping nearly 600 points. Bitcoin briefly fell below $80,000 before recovering above $81,000.
Bitcoin and stock markets took a hit after President Donald Trump announced a tariff increase on Canadian steel and aluminum, citing Ontario’s 25% tariff on U.S. electricity. The new 50% tariffs are set to take effect on March 12.
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Trump also called for Canada to eliminate its dairy tariffs, which range from 250% to 390%, and warned that if they remain, U.S. tariffs on Canadian automobiles will rise significantly by April 2. He claimed such measures would cripple Canada’s auto industry.
Adding to the controversy, Trump stated that “the only thing that makes sense” is for Canada to become the U.S.’s 51st state, eliminating all tariffs.
Markets reacted swiftly. Bitcoin fell 4.2% to dip below $80,000, while the Dow Jones lost nearly 600 points. The drop was also fueled by the administration’s announcement that no new Bitcoin purchases were planned for the national reserve. However, Bitcoin has since recovered above $81,000.
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The tariff dispute follows previous trade tensions between the U.S., Canada, and Mexico, with both neighboring countries accusing the U.S. of violating trade agreements.