Bitcoin is once again drawing attention after Donald Trump warned that Canada could face heavy trade penalties. He said the United States would impose a 100 percent tariff on all Canadian imports if Canada moves ahead with a trade agreement with China.
Relations between the two countries have become more strained following Trump’s statement on social media, where he made clear that he is willing to take aggressive trade action against America’s northern neighbor. The warning comes as reports suggest Canada is exploring deeper economic ties with China.
Because Bitcoin has previously reacted strongly to trade disputes and tariff threats, investors are closely watching price movements over the next two days to see how the market responds.
Trump posted on Truth Social that Canada could face the full tariff if Prime Minister Mark Carney agrees to allow the country to act as a gateway for Chinese goods entering the US. He claimed such a move would severely harm Canada’s economy and warned that China would overwhelm Canadian businesses, disrupt society, and damage the country’s overall way of life.
News of a possible strategic trade partnership between Canada and China surfaced about a week ago. Early details indicate the agreement would focus on lowering trade barriers and could include Canada importing nearly 50,000 electric vehicles from China at reduced tariff rates.
Before issuing this latest warning, Trump had already withdrawn an invitation for Canada to join his Board of Peace initiative. During a speech in Davos, he also stated that Canada’s economic stability depends on the United States.
Bitcoin has shown sensitivity to tariff related news in the past, even when no action has been taken. Just last week, after Trump announced new tariffs targeting several European countries, Bitcoin fell sharply from above 95,000 dollars to around 87,000 dollars within a few days.
Following Trump’s latest comments, Bitcoin briefly dropped by about 500 dollars. While the move was relatively small, traders expect higher volatility once global financial markets reopen on Monday.
