Relations between Ottawa and Washington have reached a boiling point. On Saturday, January 24, 2026, U.S. President Donald Trump issued an ultimatum that shook global markets: if Canada does not abandon its new trade agreement with China, the U.S. will impose 100% tariffs on absolutely all Canadian goods.
🛡️ Reason for anger: Electric vehicles and the 'Black market' for China
The conflict erupted after Canadian Prime Minister Mark Carney announced a 'strategic partnership' with China during a visit to Beijing. According to the agreement, Canada agreed to lower tariffs on Chinese electric vehicles (to 6.1%), while China opened its market to Canadian agricultural products (canola and meat).
Trump reacted instantly on Truth Social:
"If Governor Carney thinks he will turn Canada into a 'unloading port' for Chinese goods in the USA, he is deeply mistaken. China will eat Canada alive... If the agreement is signed - an immediate 100% tariff on all Canadian goods!"
🏛️ Mark Carney's reaction: 'Americans will pay first'
On Sunday, the Prime Minister of Canada responded to the threats, emphasizing the economic interdependence of the countries:
Inflationary shock: According to Carney, 100% tariffs will primarily hit the wallets of Americans, as Canada is the main supplier of energy resources (oil and gas) and metals for the USA.
Compliance with USMCA: Ottawa claims that the agreement with China does not violate the trilateral agreement with Mexico and the USA, but merely 'corrects the trade imbalance.'
📊 Implications for markets and the crypto industry
For traders, this conflict has become another driver of volatility:
Canadian dollar (CAD): The currency has come under serious pressure due to fears of a trade blockade.
$BTC: Amid such geopolitical instability, BTC continues to demonstrate its status as 'digital gold', although local sell-offs (as we saw today) are often caused by panic exits of investors into cash dollars in the face of 'trade wars'.
🧭 What does this mean for business?
If Trump carries out his threat, it could lead to:
1. A full review of USMCA, the term of which is approaching the review period in 2026.
2. Shortage of auto parts and building materials in the USA.
3. Strengthening China's role in Canada's economy as an alternative partner.
"Today $BTC Bitcoin is not just a coin, it is a barometer of global trust in political alliances. When Trump threatens the closest neighbor, investors seek decentralized assets."
