The crypto market is bracing for volatility after the U.S. President announced the termination of all trade negotiations with Canada. The move comes just months before a scheduled review of the North American trade pact amid the Trump tariff imposition.
Trump Terminates All Trade Talks With Canada
In a late-night post on Truth Social, Trump accused Canada of running a “fraudulent” advertisement that featured former U.S. President Ronald Reagan criticizing tariffs. He called the move “egregious” and said it justified the complete suspension of ongoing talks.
The president’s statement comes after months of escalating Trump tariffs targeting Canadian exports, with some duties reaching double-digit percentages. The US President has previously suggested that Canada could “benefit” from closer economic integration with the United States. He even floated the idea of it becoming the 51st state.
The Ontario government later confirmed that it had commissioned the disputed advertisement, which used a 1987 recording of Reagan warning about the dangers of tariffs. The $53.5 million campaign began airing on U.S. networks, including Newsmax and Bloomberg, earlier this week.
Trump’s decision is particularly striking given Canada’s efforts to ease trade tensions. In late August, Ottawa announced plans to lift retaliatory tariffs on U.S. goods. The proposal, was aimed at reducing friction in the summer’s review of the U.S.–Mexico–Canada Agreement (USMCA).
It was reported that the adjustment would eliminate a 25% tariff on several U.S. consumer goods that fall within the North American trade pact.
Trump Tariffs Extend Across Other Countries
The termination of trade talks with Canada adds to the list of Trump tariff measures currently straining U.S. relations with several major economies, including China and Mexico. In August, the U.S introduced tariffs ranging from 10% to 50% on more than 60 countries.
The latest escalation follows the ongoing China trade tensions, which led to a crypto market crash. However, Trump has confirmed a meeting with China’s President Xi Jinping, signaling a potential end to the trade war.
White House Press Secretary Karoline Leavitt confirmed that the U.S.-China summit would take place later this month in Washington. This would be the first in-person meeting between the two leaders since Trump’s return to office. Market analysts suggest that a diplomatic breakthrough could provide temporary relief for risk assets, including cryptocurrencies.
According to Bloomberg Economics estimates, there is now an 80% probability that the U.S. and China will reach a preliminary agreement on tariff terms by November 10.
Source: https://coingape.com/trump-tariffs-crypto-market-volatility-looms-as-us-president-terminates-trade-talks-with-canada/
