🇨🇦 Canada's Economic Turmoil: Trump's Tariffs and Bitcoin's Rise
📉 The Royal Bank of Canada (RBC) characterized President Donald Trump's recent actions as the "largest trade shock in nearly 100 years." On a Saturday, Trump imposed a 25% tariff on all goods from Canada and Mexico, causing the Canadian dollar (CAD) to plummet to its lowest level against the U.S. dollar (USD) in twenty-two years.
🤝 Canada and the U.S. are each other's largest trading partners, with a trade relationship valued at just under $773 billion by the end of 2023. However, in a surprising move, the U.S. imposed a 25% tariff on all Canadian goods—except for oil, which faces a 10% tariff. This decision sent the CAD tumbling to 1.4793 against the USD.
📈 Despite the loonie's decline, Bitcoin (BTC) surged past $100,000, trading at $102,170—a 4.8% increase over the previous 24 hours. Canadian finance personality Rajat Soni advised,
Don’t give your bitcoin away for something that can be printed (e.g. government currencies)
⚔️ In response to Trump's tariffs, the Canadian liberal government—led by Prime Minister Justin Trudeau, who recently stepped down amid calls for his resignation—imposed a reciprocal 25% tariff on $107 billion worth of American imports. This retaliatory measure received bipartisan support, with Conservative Party leader Pierre Poilievre stating,
We must put Canada first…common-sense conservatives condemn President Trump’s massive unjust and unjustified tariffs which will damage both American and Canadian economies
⏳ At the time of reporting, Trump had met with leaders from Mexico and Canada, resulting in a temporary 30-day reprieve of the tariffs.
