Donald Trump recently announced new customs duties that put pressure on the cryptocurrency market, including bitcoin.
Tariff Increase and Its Economic Impact
U.S. President Donald Trump instructed his Commerce Secretary to double the tariff on steel and aluminum imported from Canada from 25 percent to 50 percent. He also plans to impose a 25% tariff on electricity imported from Canada. These decisions could shift the balance in international trade and affect economic relations between the nations.
Cryptocurrency Market and Bitcoin Under Pressure
After Trump's announcement of new tariffs, Bitcoin fell below the $80,000 mark again. Changes in trade policy are causing volatility in markets, which is reflected in declining consumer confidence.
Future Actions and Prospects
Donald Trump threatened to increase tariffs on cars from Canada from April 2nd if Canada doesn't lower other tariffs. This could lead to changes in the automotive industry and further pressure on markets. Trump also suggested that if Canada became the 51st state of the U.S., all tariffs would be eliminated. "If other excessive, long-standing Tariffs are not also reduced by Canada, I will be significantly increasing Tariffs on Cars coming into the US on April 2nd, which will essentially permanently close down the auto manufacturing business in Canada. These cars can easily be made in the US," he noted.
Donald Trump's new tariffs impose significant effects on international relations and economic markets. If the situation unfolds as currently projected, the consequences could be more profound, including substantial shifts in the automotive industry and international trade.
