Donald Trump grants three days of respite to Canada. The 50% customs duties that were to come into force on August 19 are suspended while Washington and Ottawa finalize a trade agreement. Trump assures that the essentials are taken care of. Mark Carney instead speaks of significant progress with still work to do. For markets, including crypto, a new deadline has simply replaced the old one.
In brief
- Trump suspends new 50% tariffs on certain Canadian products for three days.
- Washington says an agreement already exists, subject to finalizing the documents.
- Trump’s previous trade battles have often shaken Bitcoin and the crypto market
Three more days before 50%
The new tariffs were expected to hit about $20 billion in Canadian imports. Crypto already knows the effects of this kind of announcement: Trump’s previous tariffs had severely shaken Bitcoin and other digital assets.
This time, entry into force will wait. Trump announced a three-day suspension Tuesday evening. He says that the United States and Canada now have an agreement and that there are still documents to be finalized.
Mark Carney chooses his words more carefully. The Canadian Prime Minister recognizes significant progress after several weeks of negotiations. He adds, however, that several points still need to be resolved.
The two leaders spoke Tuesday afternoon. It was their second exchange of the week. The 50% tax was to affect wine, dairy products, cement, certain clothing and hockey equipment. Even products normally protected by the USMCA trade agreement were affected.
Canada and Trump still discuss cars
Automobiles occupy a large part of the negotiations. Washington plans to reduce certain duties on Canadian vehicles from 25% to 15%. It remains to be determined which vehicles will be able to benefit from this reduction.
The United States wants to favor those containing more components manufactured on its territory. Canada wants to count parts produced in North America more widely.
Dairy products are also returning to the table. Washington is demanding more access to the Canadian market for its producers, particularly cheese. He also asks Canadian provinces to lift restrictions on American alcohol. Ottawa, for its part, is seeking to roll back several taxes already applied by the United States.
Donald Trump added another topic: Keystone XL. The president once again raises the possibility of relaunching this oil pipeline project between Alberta and the United States. The issue has dragged on for years and still faces strong environmental opposition. So three days is not a lot of time. We’ll have to deal with it.
Crypto already knows this scenario
There is nothing directly crypto about customs tariffs. However, investors in Bitcoin are following them closely. In 2025, a 90-day suspension decided by Trump immediately caused a rebound in Bitcoin and the financial markets.
The opposite also happened. Rising prices, fears about inflation, falling appetite for risk: the crypto market has already endured several episodes of high volatility linked to American trade policy.
Canada itself served as the trigger this year. In January, a new tariff threat against Ottawa accompanied a $100 billion drop in the crypto market. The current pause therefore removes an immediate risk. No more. If Washington and Ottawa finalize their agreement, the 50% could disappear even before it is implemented. If talks fail, the threat returns in three days. Trump is already talking about a deal. Carney prefers to continue negotiating.
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