Former U.S. President Donald Trump has issued a stark warning to Canada, threatening to impose 100% tariffs if the country proceeds with a trade deal with China. The threat, made via his social media platform Truth Social, specifically targets a preliminary agreement that would see Canada import nearly 50,000 electric vehicles from China at preferential tariff rates and potentially act as a "drop off port" for Chinese goods entering the United States.
Trump claimed such a deal would be devastating, stating China would "eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life." This escalation follows Trump's recent withdrawal of an invitation for Canada to join his "Board of Peace" initiative and comments that Canada "lives because of the United States."
The news has immediate implications for the cryptocurrency market, particularly Bitcoin (BTC). Historical precedent shows that even the threat of U.S. tariffs has triggered significant Bitcoin price volatility. Last week, after Trump announced new tariffs against several EU states, BTC tumbled from over $95,000 to $87,000 within days. Following this latest statement, Bitcoin briefly dipped by approximately $500, with analysts warning of further volatility when traditional financial markets open.
The threat places Canada in a difficult diplomatic and economic position, caught between its largest trading partner, the U.S., and efforts to diversify trade with China. Key Canadian export sectors like automotive, agriculture, and energy could be severely impacted if the tariffs are enacted.
