BTC Drops 8% In Last Three Days While Canada & Mexico Gears Up For Retaliation

BTC started the year with an all-time high projection. Back in December, BTC broke the $100,000 cap, and the price went up to an all-time high.  However, things have changed rapidly, and BTC is showing bearish trends and is close to hitting the $92,000 mark.  

This rapid change in dynamics is due to several reasons, such as panic liquidation and en-masse liquidation, to maximize profits. However, another prominent reason for this dip is the supposed tariff change.   

The crypto market was already awaiting the USA’s next move. Now that the time has come, things might not look too bright.  

The Tariff Update 

On Saturday, US President Donald Trump signed an executive order imposing a 25% tax on Mexico and Canada. Along with a 10% bump in Tariff for China. This can have catastrophic outcomes in the long run. 

However, the executive order also states that goods under $800 are free. This stance is called ‘de minimis’ and has existed since the 1930s to protect and keep international trading open.  

As soon as the news of the updated tariff hit the market, all hell broke loose. The crypto market dipped, and there is a general bearish trend across the board with BTC taking the brunt of the hit.  

Why Was It Imposed?  

There was a wide-scale dissent among the people when the tariff news leaked. The sudden nature of the action led people to believe that this could upend the decade-old trade relationship between the US and its allies.  

However, the White House press stated that this decision was to coerce Mexico, Canada, and China to keep their promises. These promises include handling illegal immigration and rising cases.  

The White House stated that the decision was to use these tactics, “The orders make clear that the flow of contraband drugs like fentanyl to the United States, through illicit distribution networks, has created a national emergency, including a public health crisis.”  

The Retaliation 

The news of the Tariff update has hit the market like a truck. Many business analysts believe that this move could ignite another trade war. As a result, crypto dipped at least 8% in three consecutive days. 

This shows that the said move could affect the crypto market and pricing structure of foreign currency. Trudeau and Sheinabum have openly rejected this. Sheinbaum took to her X account and stated that she expects the USA to mitigate or face retaliatory measures.  

Meanwhile, Canadian PM candidate Chrystia Freeland openly stated in an interview with CNN that this tariff update is no less than a ‘betrayal’ on America’s part. She further added, “Americans are going to be astonished by the Canadian response. We’re hurt for sure because we’re your friends and neighbours. But most of all, we’re angry. And we are united and resolute,””  

The End Note: What Does The Future Hold? 

The future seems dicey since everyone is astonished by this executive order. BTC has already plummeted 8% in the last few days and trade seems to be at a halt. All in all, this one small decision of Trump could be the start of a new trade war.