Over the weekend, Donald Trump announced the imposition of 25% tariffs on products imported from Mexico and Canada, in addition to a 10% tariff on Chinese products. In theory, these measures aim to combat fentanyl trafficking and illegal immigration, and are justified as a national emergency. After negotiations, tariffs targeting Mexico and Canada were suspended for 30 days to allow for further discussions, while the tariff on Chinese goods went into effect as planned.
Impacts on the Crypto Market
Trade tensions resulting from these measures have generated volatility in global financial markets, including the cryptocurrency market. Last weekend, Bitcoin hit a low of approximately $91k, its lowest value since January 13th. Following the announcement of the temporary suspension of tariffs for Mexico and Canada, Bitcoin made a quick recovery, trading above $102,000 on Monday night.
Details of Proposed Rates and Suspensions
The advertised rates included:
- Mexico and Canada: 25% tariff on all imports, with the exception of Canadian energy products, which would have a 10% tariff.
- China: 10% tariff on all imports.
After negotiations, tariffs for Mexico and Canada were suspended for 30 days. Mexico has pledged to send 10,000 National Guard troops to reinforce the border and combat fentanyl trafficking. Canada has agreed to invest C$1.3 billion in border security and appoint a "czar" to oversee efforts against fentanyl trafficking. The 10% tariff on Chinese goods went into effect as planned, and China responded by imposing additional tariffs of 10% to 15% on certain American goods.
Posted Using INLEO