News

Trump Tariffs: Canada to Lift Retaliatory Tariffs on U.S. Goods, Boosting Crypto Market Rally

Canada eases tariffs on U.S. goods, sparking Bitcoin, Ethereum and broader crypto market rallies. This indicates renewed investor confidence
Published by
Trump Tariffs: Canada to Lift Retaliatory Tariffs on U.S. Goods, Boosting Crypto Market Rally

Highlights

  • Canada to lift tariffs on U.S. goods, boosting crypto market optimism.
  • Prime Minister Carney’s tariff shift sparks investor confidence in digital assets.
  • Bitcoin surges past $115,900 while Ethereum rallies 9% on trade easing.

Canada is on the path of removing retaliatory tariffs on United States goods to diffuse the tense trade situation between the two nations. The crypto market has shot up as Bitcoin and Ethereum recorded sharp gains.

Advertisement

Move Shows Softening Approach As Crypto Market Responds

A Bloomberg report revealed that the decision is anticipated to be announced by Prime Minister Mark Carney after cabinet meetings, proving a huge shift in Canadian tariff policy. The modification will eliminate a 25% tariff on several U.S. produced consumer items so long as they are within the U.S.-Mexico-Canada agreement (USMCA).

This is viewed as a symbolic move towards President Donald Trump who has persistently announced stronger trade measures against many countries. Meanwhile, investors have noticed the implication of this decision on the crypto market.

However, Ottawa is maintaining tariffs on U.S. steel, aluminum, and automobiles. The government of Canada is committed to keeping these duties as a means of protecting its home industries. Accordingly, the crypto market has already with notable price gains.

Officials familiar with the matter say Canada’s counter-tariff strategy will now stress the importance of preserving that agreement, while maintaining flexibility on politically sensitive sectors. Analysts believe the softer tone could indirectly influence investor confidence in the crypto market.

Carney previously threatened to escalate retaliation after the White House doubled tariffs on steel and aluminum, but ultimately refrained. Canada also did not adjust tariffs when the Trump administration increased duties on Canadian fentanyl-related exports.

Economists note that despite years of tariffs, Canada has avoided significant inflationary fallout. Statistics Canada reported consumer prices rose just 1.7% in July, below the Bank of Canada’s 2% inflation target.

Advertisement

Bitcoin and Ethereum Lead Strong Crypto Market Rally on Trade Optimism

Based on TradingView data, the expected decision has stirred optimism in financial markets, including the crypto market. The flagship cryptocurrency, Bitcoin, grew 3.62% throughout the day and reached more than $116,500 after briefly dropping to around $112,000. The bounce is an indication of increasing demand in digital assets as a safe-haven asset. Over the past year, Bitcoin has gained more than 90%, with year-to-date gains above 24%, underscoring its strong performance within the crypto market.

Bitcoin price jumped sharply as Canada moved to ease U.S. trade tariffs.

Ethereum price outpaced Bitcoin with an even stronger move, jumping more than 9% to trade near $4,600. The asset’s explosive daily rally pushed monthly gains above 23% and yearly growth to more than 75 %. Its year-to-date climb now sits at nearly 39%, with long-term investors, like Tom Lee, seeing more than 1,000 % growth over five years.

Advertisement

Share
Paul

Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others. He holds a degree in Geophysics from OAU, Nigeria. When he's not writing, he loves watching soccer and reading educative journals. He can be reached via paul@coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Ripple’s Chris Larsen Expands XRP Realized Profit to $764M Amid Evernorth Deal

Ripple executive chairman Chris Larsen has amassed millions in realized profit from XRP withdrawals since…

October 23, 2025
  • News

Just In: Hyperliquid Strategies Eyes $1B Capital Raise, Plans HYPE Token Accumulation

Hyperliquid Strategies has filed with the U.S. SEC to raise up to $1 billion through…

October 23, 2025
  • News

Senators Reaffirm Commitment to Market Structure Bill After Meeting with Coinbase, Ripple

Senate Democrats and Republican lawmakers have ended separate roundtable meetings focused on the Crypto Market…

October 23, 2025
  • News

How the Crypto Market Could React to the Next Fed Meeting on October 29?

The crypto market has, for a while now, been pricing a potential 25 basis points…

October 23, 2025
  • News

$1.68 Trillion T. Rowe Price Files for First Active Crypto ETF Holding BTC, ETH, SOL, and XRP

Rowe Price has filed for its first actively managed crypto exchange-traded fund (ETF). It is…

October 22, 2025
  • News

Standard Chartered Predicts Bitcoin Could Drop Below $100K Amid U.S.–China Trade Tensions

Standard Chartered analyst Geoff Kendrick has predicted that the Bitcoin price could suffer a significant…

October 22, 2025