Trump Tariffs: U.S. to Raise Tariffs on Canadian Autos to 50% as Trade War Escalates
Highlights
- Trump announced that they will hike tariffs on certain Canadian goods to 50% starting next year.
- This follows failed trade talks between the two countries.
- Bitcoin slid following the President's announcement but has recovered.
The Trump tariffs are back in focus after the U.S. President announced plans to raise levies on certain Canadian goods. Bitcoin briefly slipped on the back of the announcement but has quickly recovered to trade above $79,000.
Trump Tariffs: U.S. To Hike Rates On Canadian Goods
In a Truth Social post, President Trump announced that the U.S. will increase tariffs on all cars, trucks, automotive parts, and steel from Canada to 50% starting January 1 next year. “Canada will be treated like a State no longer!” he said.
The latest Trump tariffs follow a breakdown in trade talks between the two countries last week, just before the previously announced U.S. tariffs took effect. In response, Canada’s Prime Minister announced retaliatory tariffs and declared they were at war as the trade war escalates.
In his latest post, Trump also criticized Canada, saying it was among the worst nations to deal with on trade and in other ways. “They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US! They do 95% of their business with the U.S., with us, the exact opposite!” he added.
The Trump tariffs have been a major highlight of the president’s second term, a move which has also rattled markets on several occasions. Last month, the Trump administration set the global tariffs at 12.5%, just months after the U.S. Supreme Court ruled that some of the tariffs were illegal.
Bitcoin Briefly Falls
Bitcoin briefly fell to around $78,200 after the announcement of the latest Trump tariffs. However, the leading crypto has since recovered and is trading above the psychological $79,000 level as it eyes a rally to $80,000.
BTC is currently trading at around $79,300, up over 2% today, according to TradingView data. Bitcoin broke above $78,000 earlier after reports that the U.S. Treasury could use nearly $1 trillion of its cash reserves for debt buybacks.
Bitcoin climbed from a low of around $63,000 last week after the U.S. Treasury first announced plans to increase its buyback operation from $2 billion to $4 billion. BTC has continued to rally since then despite the ongoing U.S.-Iran war and the latest Trump tariffs.
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