Donald Trump’s decision to backtrack on raising tariffs on Canadian steel and aluminum to 50 percent may not have had an immediate impact on Bitcoin’s price, but it could create a more positive market sentiment in the coming days.
Trump had initially announced on Truth Social that, starting March 12, the US would impose a 25 percent tariff on electricity imported from Ontario and an additional 25 percent tariff on steel and aluminum, effectively raising the total tariff to 50 percent. However, according to Bloomberg, after Ontario’s government decided to remove its 25 percent export tax on electricity sold to the US, Trump reconsidered his stance and announced that the tariffs on steel and aluminum would remain at the current 25 percent level.
In the past, trade agreements between the US, Canada, and Mexico have led to significant rallies in the crypto market. For instance, when tariffs on automobile imports from these countries were delayed, Bitcoin surged past 92,000 dollars. However, this time, Trump’s reversal on tariffs did not immediately impact the market.
Experts suggest that reduced trade uncertainty and the decision to keep tariffs from rising could prevent the US dollar from strengthening further, encouraging investors to turn to alternative assets like Bitcoin. Crypto analysis firms believe that easing global trade tensions could trigger a new Bitcoin rally in the medium term. Analysts note that Bitcoin has reacted positively to similar situations before, and while the market remains calm now, an upward trend could emerge in the coming weeks.
