US Imposes Tariffs on Mexico, Canada, and China
President Trump’s Executive Order
Following through on threats made throughout his campaign and repeated in the opening days of his presidency, Donald Trump has imposed 25% tariffs on nearly all imports from Mexico and Canada and a 10% tariff on goods from China.
The tariffs are effective beginning Tuesday.
Reasons Behind the Tariffs
“The sustained influx of illicit opioids and other drugs has profound consequences on our Nation, endangering lives and putting a severe strain on our healthcare system, public services, and communities,” said the president in his Executive Order authorizing the levies.
Impact on Cryptocurrency
With traditional markets closed for the weekend, crypto is bearing the brunt of the risk-off reaction to the tariffs. Bitcoin (BTC) is lower by 2% and just hanging on above $100,000 after rising as high as $106,000 only a bit more than 24 hours ago.
Altcoins are faring worse, with ether (ETH), XRP, and solana (SOL) lower by 6%-8%. The broad market gauge CoinDesk 20 Index is down 4.8%.
No Exemptions
There will be no exemptions to the tariffs, a senior White House official told the WSJ, and they will remain in place until the president is satisfied the named countries have stopped the flow of fentanyl into the U.S.
Canadian Response
“No one — on either side of the border — wants to see American tariffs on Canadian goods,” wrote outgoing Canadian Prime Minister Justin Trudeau on X yesterday. “If the United States moves ahead, Canada’s ready with a forceful and immediate response.”
Conclusion
The US has imposed tariffs on Mexico, Canada, and China, citing the need to address the flow of illicit drugs into the country. The impact on cryptocurrency has been significant, with many altcoins experiencing significant losses. The tariffs will remain in place until the president is satisfied that the named countries have taken steps to address the issue.
FAQs
Q: What are the tariffs on Mexico and Canada?
A: The tariffs are 25% on nearly all imports from Mexico and Canada.
Q: What is the tariff on China?
A: The tariff is 10% on goods from China.
Q: Why are the tariffs being imposed?
A: The tariffs are being imposed to address the flow of illicit drugs into the US.
Q: Will there be any exemptions?
A: No, there will be no exemptions to the tariffs.
Q: What is the impact on cryptocurrency?
A: The impact on cryptocurrency has been significant, with many altcoins experiencing significant losses.
Q: What is the response from Canada?
A: Canada has stated that it is ready with a forceful and immediate response if the US imposes tariffs on Canadian goods.
