Bitcoin’s value falls by 4% after Trump imposes tariffs on Canadian steel and aluminum

President Donald Trump unsettled Bitcoin and various markets following his announcement of a tariff hike on Canadian steel and aluminum, increasing it from 25% to 50%, in response to Ontario’s 25% tariff on U.S. electricity.

As per Trump’s post on Truth Social, the new tariffs are set to be implemented on March 12. He also urged Canada to eliminate tariffs on dairy products, which can be as high as 390%, and cautioned that higher tariffs on Canadian automobiles may be imposed by April 2.

In his remarks, President Trump condemned Canada’s long-standing tariffs on U.S. dairy products, ranging from 250% to 390%, branding them as “outrageous.” He further indicated he might declare a national emergency regarding electricity to address what he termed an “abusive threat” from Canada.

‘Egregious’ tariffs

Furthermore, Trump cautioned that if Canada fails to remove other “egregious” tariffs, the U.S. would dramatically escalate tariffs on Canadian automobile imports starting April 2—a step he says could effectively “shut down the automobile manufacturing sector in Canada.”

He also suggested 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.”

Markets reacted negatively to the news. Bitcoin (BTC) dropped by 4.2%, falling below $80,000, while The Dow Jones experienced a decline of nearly 600 points. Investors are responding to both the rising trade tensions and the administration’s announcement that it has no plans to purchase additional Bitcoin for the national strategic reserve.

As of the time of writing, Bitcoin has recovered to above $81,000.

This tariff dispute continues the trend of Trump’s tariffs on goods from Canada and Mexico, with both countries pushing back on the grounds of trade agreement violations.