Trump announces new tariffs on Canada, demonstrating a tough stance in the face of the neighboring country's defiant attitude. Trump reiterated his call for the US to annex Canada, ending the latter's independence.

As in previous announcements, this threat could shock the Bit market, but the tariffs may have already been priced in or may not take effect. The more important question is whether the US is about to fall into a recession.

Trump takes a hard line on Canada tariffs

The tariffs proposed by President Trump have caused chaos in the Bit market, and it seems they are not stopping. In early February, Canada and Mexico managed to delay them, significantly helping the Bit market. However, Trump is continuing and imposing new tariffs on Canada:

"Based on the fact that the 25% Tariffs were not paid by Canada, as they had promised, I have Instructed our great new Secretary of Commerce to take another look at Tariffing all such Imports from Canada. Canada has all but Ruined our Dairy Industry. Tariffs on Aluminum and Steel will also be reinstated. Not fair to our Farmers and Workers!" Trump announced on social media.

Trump slightly edited the announcement after his initial post, clarifying that the tariffs on Canada have a clear deadline. Trump also pointed out some other priorities in US-Canada relations: dairy sales, auto manufacturing, military spending, and more. He ended with another call for the US to annex Canada.

This final demand, to completely end Canada's national sovereignty, has been a particularly controversial point in the tariff story. After the US imposed tariffs on China, that country retaliated with some tariffs of its own.

Canada has also retaliated, and this tough stance has created a new wave of support for the ruling party in the country.

This growing popularity is particularly significant. It has prompted harsher rhetoric from Canada, and Trump has responded in kind. With his new offensive, the situation is escalating. It seems difficult to clearly identify an exit for both sides.

What does this mean for the Bit market? These tariffs have caused a continuous price decline for the industry, with the market dropping with each new announcement.

Additionally, Bit liquidations have been high, and Bitcoin prices are not good. The new tariffs on Canada could have a severe impact.

However, the market had already declined before Trump announced the new tariffs on Canada. The broader macroeconomic outlook is quite negative, and these tariffs may not change much.

The Bit community will need to closely monitor the situation as the tariffs potentially take effect tomorrow, and their impact will be clearer then.

Finally, "if" is the key word here. Since Trump has hesitated to impose tariffs on Canada and Mexico before, he may hesitate again.

However, the uncertainty this is creating in the markets could be more dangerous than any tariffs. If the markets lose confidence, that will certainly affect the Bit market.

The most important question is whether a broader recession is imminent. These tariffs on Canada may or may not actually happen, and if they do, Trump could retract them within 24 hours.

In this chaotic time, it is difficult to say whether any policy can change everything.