President Donald Trump spooked Bitcoin and other markets after announcing a tariff increase on Canadian steel and aluminum from 25% to 50%, citing Ontario’s 25% tariff on U.S. electricity. 

According to Trump’s Truth Social post, the new tariffs will take effect on March 12. Trump also called on Canada to remove up to 390% dairy tariffs and warned of higher tariffs on Canadian cars by April 2.

In his statement, President Trump criticized Canada’s longstanding tariffs on U.S. dairy products, which range from 250% to 390%, labeling them as “outrageous.” He further threatened to declare a national emergency concerning electricity to counter what he described as an “abusive threat” from Canada. 

‘Egregious’ tariffs

Additionally, Trump warned that if Canada does not eliminate other “egregious” tariffs, the U.S. will substantially increase tariffs on Canadian automobile imports starting April 2—a move he claims would effectively “shut down the automobile manufacturing business in Canada.”

Trump also said that “the only thing that makes sense is for Canada to become our cherished Fifty-First State. This would make all tariffs, and everything else, totally disappear.”

Markets reacted to the announcement. Bitcoin (BTC) fell 4.2%, dipping below $80,000 while The Dow Jones dropped nearly 600 points. Investors responded to both the trade tensions and the administration’s statement that no new Bitcoin purchases were planned for the national strategic reserve.

Bitcoin has rebounded to above $81,000 at the time of writing. 

The tariff dispute follows Trump’s tariffs on Canadian and Mexican goods. Canada and Mexico have pushed back, citing trade agreement violations.

There’s a 70% chance that the trade war between Canada and the U.S. will be over by May, according to odds on a Polymarket contract on the topic, as Commerce Secretary Howard Lutnick told Fox Business that U.S. President Donald Trump was open to negotiation.

On Tuesday morning, Canada and Mexico faced the implementation of 25% tariffs on all products entering the U.S., with President Trump citing their failure to curb fentanyl trafficking and illegal immigration as a national security threat.

But later in the day, Lutnick appeared to offer a potential avenue for negotiation, with odds rising 20% in a few hours on Polymarket.

I think [Trump is] going to work something out with them,” Lutnick said on Fox Business. “It’s not going to be a pause, none of that pause stuff, but I think he’s going to figure out: you do more, and I’ll meet you in the middle someway and we’re going to probably announce that tomorrow.”

Lutnick’s comments also appeared to calm crypto markets on ‘Turnaround Tuesday’ with bitcoin (BTC) up 1.5% and trading comfortably above $87,000, according to CoinDesk Indices data.

The CoinDesk 20 (CD20), a measure of the performance of the world’s largest digital assets, is up 2% on the news.

Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!

So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.