Former President Donald Trump disrupted Bitcoin and various financial markets with his recent announcement regarding a tariff increase on Canadian steel and aluminum, raising it from 25% to 50% in response to Ontario’s 25% tariff on U.S. electricity.
According to Trump’s post on Truth Social, the new tariffs are scheduled to take effect on March 12. He also called for Canada to abolish tariffs on dairy products, which can reach as high as 390%, and warned that additional tariffs on Canadian automobiles may be imposed by April 2.
In his statements, Trump criticized Canada’s longstanding tariffs on U.S. dairy products, which range from 250% to 390%, calling them “outrageous.” He further suggested he might declare a national emergency concerning electricity to address what he described as an “abusive threat” from Canada.
‘Egregious’ tariffs
Moreover, Trump warned that if Canada does not remove other “egregious” tariffs, the U.S. would significantly increase tariffs on imports of Canadian automobiles starting April 2—a move he claims could effectively “shut down the automobile manufacturing sector in Canada.”
He also proposed that “the only logical solution is for Canada to join us as our beloved Fifty-First State, which would eliminate all tariffs and related issues.”
The markets reacted negatively to this news, with Bitcoin (BTC) falling by 4.2% and dropping below $80,000, while The Dow Jones saw a decrease of nearly 600 points. Investors are responding to both the escalating trade tensions and the administration’s announcement that there are no plans to acquire additional Bitcoin for the national strategic reserve.
At the time of this writing, Bitcoin has risen back above $81,000.
This tariff dispute continues the pattern of Trump’s tariffs on goods from Canada and Mexico, with both nations contesting the actions based on alleged trade agreement violations.
