Trump Tariffs Canada: New 35% Import Duty Could Boost Crypto

Trump Tariffs Canada Begins August 1 as Crypto Markets Watch Closely

In a bold and unexpected move, the United States President  has announced a 35% tariff on all goods imported from Canada, starting August 1. The announcement came on Thursday, July 11, through a formal letter addressed to the Canadian government. 

Source: The Kobeissi Letter

Why Did the US Impose New Rates?

The reason behind this new Trump Tariffs Canada is, that the President claims that country is not doing enough to stop fentanyl, a dangerous drug, from entering the U.S. He said this new tariff may be increased or lowered depending on how Canadian government responds. In his words, “If the country works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter.”

Existing Trump Tariffs Canada Are Still in Place

The new 35% tariff is in addition to older rates. The U.S. already has:

• 25% on Canadian auto parts
  

• 50%  on Canadian steel and aluminum

The president also warned that if government raises its rates in response, the U.S. will add that number to the existing 35%. For example, if the country imposes 10%, the U.S. will go to 45%.

Criticizes Canadian Trade Barriers

In his letter, the president called out the high tariff rates on American dairy products by the country, some reaching as high as 400%. He argued that nation's business policies hurt American farmers and workers. He also claimed the trade deficit between the two nations is a threat to U.S. national security.

Deadline to Respond

While the president gave other countries more time to make trade deals, deadline for the country stays at July 21. If no deal is reached, the 35% Trump Tariffs Canada will begin on August 1. Canada’s Prime Minister’s Office said it is still working to meet the deadline.

The U.S. also warned that any goods shipped through other countries to avoid the new rates will still be taxed at the full rate.

Crypto Market Reacts to Trump Tariffs Canada

The crypto market is paying close attention to these Trump Tariffs Canada changes. In the past, during trade conflicts like the Trump China trade war, investors moved their money into crypto. Bitcoin and other cryptocurrencies often become more popular when traditional markets become uncertain.

Because crypto is not controlled by any one government, people see it as a safe place during global issues. If tensions between the two countries grow, crypto could once again become a popular choice for investors.

Currently Bitcoin hits the all time high of the value $116,627 with an increase of 6.65%, while Ethereum also crossed $3000 which is a huge milestone for the whole crypto community. 

Source: CoinMarketCap

Will Crypto Become a Safe Haven Again?

Many believe that Trump Tariffs Canada could trigger more interest in digital assets. As businesses and countries look for new ways to do business, blockchain and digital assets tools could become even more useful. If traditional trade weakens, crypto may grow stronger.

Final Thoughts

The Trump Tariffs Canada policy is more than a business decision, it could shift global markets, push new trade strategies, and increase digital assets interest. With August 1 approaching, investors and policymakers around the world are watching closely.