A Bloomberg report revealed that Prime Minister Mark Carney is expected to announce the decision following cabinet meetings, which represents a radical change in Canadian tariff policy. The modification will eliminate a 25% tariff on various consumer items produced in the United States, provided they are included in the agreement between the United States, Mexico, and Canada (USMCA).
This is considered a symbolic gesture towards President Donald Trump, who has persistently advocated for greater enforcement of trade laws. Meanwhile, investors have noticed the implications of this decision on the cryptocurrency market.
However, Ottawa maintains tariffs on steel, aluminum, and American cars. The Canadian government has committed to keeping these tariffs to protect its local industries. Consequently, the cryptocurrency market has already experienced a notable increase in prices.
Officials familiar with the matter state that Canada's anti-tariff strategy will now emphasize the importance of preserving such an agreement while maintaining flexibility in politically sensitive sectors. Analysts believe this softer tone could indirectly influence investor confidence in the cryptocurrency market.
Carney previously threatened to escalate reprisals after the White House doubled tariffs on steel and aluminum, but ultimately refrained. Canada also did not adjust tariffs when the Trump administration increased taxes on Canadian exports related to fentanyl.
It also generated optimism in financial markets, including the cryptocurrency market. The flagship cryptocurrency, Bitcoin, grew by 3% throughout the day and surpassed $115,900 after briefly falling to around $112,000. This rebound indicates a growing demand for digital assets as a safe haven. Over the past year, Bitcoin has gained more than 89%, with gains so far this year exceeding 24%, highlighting its strong performance in the cryptocurrency market.
Ethereum outperformed Bitcoin with an even stronger move, rising more than 9% to trade near $4,600. The explosive daily rebound of the asset pushed monthly gains above 23% and annual growth to over 75%. Its rise so far this year now stands at nearly 39%, and long-term investors, such as Tom Lee, foresee growth of more than 1,000% in five years.
