Bitcoin Price in the Crosshairs Again as Trump Threatens Canada With 100% Tariffs

The tension between the two North American giants continues to escalate as US President Donald Trump just warned on his social media platform that he is willing to tax its northern neighbor with a 100% tariff if Canada makes a deal with China.

Given the historical impact of tariffs or even their threat on BTC, it’s worth keeping an eye on the asset’s price moves over the next 48 hours.

Minutes ago, Trump took it to Truth Social to warn Canada about the aforementioned 100% tariffs if Prime Minister Mark Carney strikes a deal to become a “drop off port” for China to “send goods and products into the United States.” He went even further, claiming that such a deal with the Asian giant could be devastating to Canada’s economic prosperity:

The first reports about this “new strategic partnership” between Canada and China emerged about a week ago. The preliminary trade deal aims at reducing tariffs, including a commitment to import almost 50,000 EVs from China at preferential tariff rates.

Before today’s threat, Trump withdrew his invitation for Canada to join his Board of Peace initiative after claiming during his Davos speech that Canada “lives because of the United States.”

Bitcoin’s price has been severely impacted by even the mere threats of tariffs from the US against other nations, especially if they are supposed to be allied countries. Recall that just last week, after Trump announced new tariffs against several EU states, BTC tumbled from over $95,000 to $87,000 from Monday until Wednesday.

It briefly dipped by a more modest $500 minutes ago after Trump’s statement on Truth Social, but more volatility could be expected on Monday morning when other financial markets open.

BTCUSD Jan 24. Source: TradingView

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