Trump Puts Canada Trade War on Hold for 72 Hours

Donald Trump gives Canada a three-day reprieve. The 50% tariffs that were supposed to take effect on August 19 are suspended while Washington and Ottawa finalize a trade agreement. Trump says the essential points are settled. Mark Carney talks rather about significant progress with still work to do. For markets, including crypto, a new deadline has simply replaced the old one.

Three more days before the 50%

The new tariffs were to hit about 20 billion dollars of Canadian imports. Crypto already knows the effects of such an announcement: Trump’s previous tariffs had strongly shaken Bitcoin and other digital assets.

This time, enforcement will wait. Trump announced on Tuesday evening a three-day suspension. He states that the US and Canada now have an agreement and mainly documents remain to be finalized.

Mark Carney chooses his words more cautiously. The Canadian Prime Minister acknowledges significant progress after several weeks of negotiations. However, he adds that several points still need to be settled.

The two leaders spoke on Tuesday afternoon. It was their second exchange this week. The 50% tax was supposed to notably affect wine, dairy products, cement, certain clothing, and hockey equipment. Even products normally protected by the USMCA trade agreement were concerned.

Canada and Trump still discuss cars

Automobiles take up a large part of the negotiations. Washington is considering reducing certain tariffs on Canadian vehicles from 25% to 15%. It remains to be determined which vehicles will benefit from this reduction.

The United States wants to favor those containing more components made on their territory. Canada wants to more broadly count parts produced in North America.

Dairy products also come back on the table. Washington demands more market access for its producers, especially cheese. It also requests Canadian provinces to lift restrictions imposed on American alcoholic beverages.

Ottawa, for its part, seeks to reverse several taxes already applied by the United States.

Donald Trump added another topic: Keystone XL. The president again mentions the possibility of reviving this pipeline project between Alberta and the United States. The case has been dragging on for years and still faces strong environmental opposition. Three days therefore do not represent much time. We will have to manage.

Crypto already knows this scenario

Tariffs have nothing directly to do with crypto. Bitcoin investors nevertheless follow them closely. In 2025, a 90-day suspension decided by Trump immediately caused a rebound in Bitcoin and financial markets.

The opposite also happened. Tariff increases, inflation fears, reduced risk appetite: the crypto market has already weathered several episodes of high volatility related to US trade policy.

Canada itself served as a trigger this year. In January, a new tariff threat against Ottawa was accompanied by a 100-billion-dollar drop in the crypto market. The current pause therefore removes an immediate risk. Nothing more. If Washington and Ottawa finalize their agreement, the 50% could disappear before even being implemented. If discussions fail, the threat returns in three days. Trump already talks about a deal. Carney prefers to keep negotiating.