U.S. President Donald Trump threatened yesterday to impose a 100% tariff on all Canadian goods if Canada proceeds with any trade agreement with China, a new threat in escalating economic tensions between Washington and Ottawa.
Here’s what to expect when opening the markets:
📉 1. Potential weakness of the Canadian dollar
Canada relies heavily on trade with the United States, and these tariffs could pressure the value of the Canadian dollar against the U.S. dollar.
🚗 2. Rise in prices of common goods
The United States and Canada share automotive and energy supply chains. Imposing large tariffs may increase the cost of cars and fuel for American consumers due to the complexity of cross-border trade.
📉 3. Pressure on stocks
Stocks of companies connected to cross-border trade such as automotive and banking may see volatility or declines at the start of trading sessions.
⚠️ 4. Why the crypto market might decline now
As the US financial markets are currently closed, some investors may begin to sell assets like Bitcoin and cryptocurrencies to secure liquidity before a week filled with risks, increasing downward pressure on crypto.
Summary:
These threats represent an unusual escalation in trade relations between the world's two largest economies and pose pressure that may extend its effects to currencies, stocks, and commodity prices in the coming days.
📊 Cryptocurrencies in strong upward movement:
💎 $ENSO
💎 $SOMI
💎 $RIVER
#USCanadaTrade
#TariffThreat
#TRUMP
#FXImpact
#cryptouniverseofficial