Trump May Roll Back Tariffs on Canada, Mexico Says Howard Lutnick; Impact On Crypto?
Howard Lutnick, Secretary of Commerce Indicated President Trump may remove tariffs on Canadian and Mexican goods as early as tomorrow. This is after a day of intense negotiations with the two countries, which suggests a potential compromise in U.S. trade policy.
The move could reduce some of the recently imposed 25% tariffs. Right away, the largest technology ETF grew nearly 1% in late trading, while Index Futures bounced back from lows. The remarks came after a sharp decline in the second day of the U.S. stock market, which was a sharp decline the next day amid fears that Trump’s tough trade policy would trigger a full-scale trade war.
Details are not disclosed!
The cabinet secretary did not reveal details of Trump’s plan, but suggested that the president would meet with Canada and Mexico “in the middle.” He also suggested that Trump would not completely eliminate tariffs.
“Mexicans and Canadians are on the phone all day today trying to prove they will do better,” Lutnick said Tuesday afternoon. Lutnick hinted that any deal needs to be resolved by Canada and Mexico on issues criticized by Trump. “The president is fair and reasonable,” he noted, but added that Mexico and Canada must “do more” before any relief occurs.
The comments came hours after Trump originally made a prime-time speech to Congress.
Trump threatens EU tariffs
Trump has been defending tariffs as a negotiation tool, claiming that Canada and Mexico are not doing enough to stop drugs and crimes from entering the United States and feeling the economic impact, and the government seems ready to adjust its approach, but not entirely.
China’s tariffs began in February, and China retaliated. Trump then raised tariffs on Chinese imports to 20%, and China will impose 15% tariffs on U.S. agricultural commodities starting Monday. Trump also threatened new tariffs on the EU, which could expand the trade war to Europe.
Impact on the crypto market
Yesterday’s tariff announcement also caused damage to the cryptocurrency market, with Bitcoin falling 9% to $83,000, while Ethereum dropped 15%, and Altcoin also dropped sharply.
Bitcoin is now trading at $87,723, up more than 4% in the past 24 hours. AltCoins like Yuanjin, XRP, SOL and Cardano also increased slightly, as they exceeded 5%, 9%, 5% and 22% in the past day, respectively. Today’s crypto market capitalization is close to $4 trillion, up 4% over the past day.
Crypto-related stocks also saw earnings: MicroStrategy (MSTR) rose 9.55%, Coinbase (Coin) rose 3.22%, and Marathon Digital (Mara) rose 1.34%. These increases reflect market responses to the latest policy changes affecting the cryptocurrency sector.
