President Donald Trump surprised Bitcoin and other markets after announcing a rise in Canadian steel and aluminum tariffs from 25% to 50%, citing Ontario's 25% tariffs on US electricity.
According to Trump's Truth Social Post, the new tariffs will come into effect on March 12th. Trump also called on Canada to remove dairy tariffs of up to 390%, warning about higher tariffs on Canadian cars by April 2.
In a statement, President Trump criticised Canada's long-standing tariffs on US dairy products ranging from 250% to 390%, labeling them as “outrageous.” He further threatened to declare a national emergency on electricity to counter what he described as an “abuseful threat” from Canada.
“Awful” tariff
Additionally, Trump warned that if Canada does not rule out other “bad” tariffs, the US would significantly increase tariffs on Canadian automobile imports from April 2nd.
Trump also said, “The only thing that makes sense is that Canada will become our precious 50 first states. This will incur all the tariffs and all else will disappear for good.”
The market responded to the announcement. Bitcoin (BTC) fell 4.2%, below $80,000, while the Dow Jones fell nearly 600 points. Investors responded to both trade tensions and the administration's statement that new Bitcoin purchases are not planned to be planned for national strategy preparation.
Bitcoin has rebounded over $81,000 at the time of writing.
The tariff dispute follows Trump's tariffs on Canadian and Mexican goods. Canada and Mexico pushed back by citing trade deal violations.
