Bitcoin Price Drops as Trump’s 25% Tariffs Hit Mexico and Canada

President Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President is once again using tariffs to reshape U.S. trade policy. This has been one of his main tools both before and after his presidency. Tariffs can have a significant impact on inflation, as they tend to drive up prices. This, in turn, could influence the Federal Reserve’s decisions on interest rates in the coming months and years.

The crypto market recently saw a repeat of past trends when hopes for a tariff delay were dashed. A report suggesting the delay was quickly dismissed by the White House, leading to a sharp shift in market sentiment.

Bitcoin Reacts to Tariff News

On Thursday, President Trump announced that 25% tariffs on Mexico and Canada would take effect on February 1. This news initially pushed Bitcoin above $106,000, but the cryptocurrency soon dropped 2%, settling around $104,000. U.S. stock markets also pulled back, though they still ended the day with gains.

“The President will be implementing tomorrow 25% tariffs on Mexico, 25% tariffs on Canada, and a 10% tariff on China for the illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed tens of millions of Americans,” White House spokesperson Karoline Leavitt said during a White House press briefing.

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Is It True… or Not?

On Friday, Reuters reported that the tariffs might be delayed until March 1, allowing countries to request exemptions for specific exports. However, the White House quickly rejected the claim, with Leavitt confirming that the tariffs, including a 10% levy on China, would go into effect the following day.

Trump’s tariffs could disrupt $1.6 trillion in North American trade, threatening to end the free trade system that has connected the U.S., Mexico, and Canada for over 30 years. The possibility of retaliation from both Mexico and Canada adds to the uncertainty surrounding these moves.

Rough Days for Bitcoin!

Bitcoin’s price had risen above $106,000, seemingly on track to break through the $109,000 mark.

However, following the tariff announcement, prices dropped sharply, with Bitcoin trading just under $103,000—down 2.3% in the last 24 hours. The cryptocurrency market remains highly sensitive to geopolitical and economic shifts, especially when it comes to major trade decisions.

The next few weeks could hold even more surprises, as these tariffs threaten to rewrite trade rules and spark market reactions that we’ll all feel.

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