TLDR
- Trump ended all trade negotiations with Canada after a disputed ad campaign.
- Canada’s $53.5M ad used Reagan’s remarks against tariffs, angering Trump.
- Crypto markets may face turbulence amid ongoing global tariff tensions.
- A planned US–China summit offers cautious optimism for market stability.
The crypto market faces renewed uncertainty after U.S. President Donald Trump ended trade negotiations with Canada. The decision, announced on Truth Social, follows growing tensions over tariffs and a controversial Canadian ad campaign. The move could increase market volatility, especially as investors await progress in U.S.–China tariff discussions expected later this month.
Trump Ends Trade Negotiations With Canada
President Trump announced the immediate termination of all trade negotiations with Canada, citing a “fraudulent” advertisement as the reason. The ad, funded by the Ontario government, featured late U.S. President Ronald Reagan criticizing tariffs. Trump described the campaign as “egregious,” stating it justified halting ongoing discussions.
“TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY AND ECONOMY OF THE U.S.A.,” Trump wrote on Truth Social. “Based on their behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”
The U.S. administration has already imposed tariffs on Canadian exports, with some duties exceeding double digits. The president previously suggested closer integration with the U.S. economy could benefit Canada and even mentioned the possibility of it becoming the “51st state.”
Canada Responds To Trump’s Decision
Canadian officials confirmed that the disputed advertisement was commissioned by the Ontario government. The campaign, costing $53.5 million, began airing on major U.S. networks earlier in the week. The ad used Reagan’s 1987 remarks warning against tariffs, which reportedly angered the Trump administration.
Ottawa had earlier proposed lifting retaliatory tariffs on U.S. goods as part of efforts to reduce trade friction. The plan included removing a 25% duty on several consumer products under the U.S.–Mexico–Canada Agreement (USMCA). Trump’s decision to end talks has now cast uncertainty over that proposal and the future of the regional trade pact.
Trump Tariffs Widen Global Economic Tensions
The suspension of Canadian trade talks adds to a growing list of countries affected by Trump’s tariff measures. In August, the United States extended tariffs between 10% and 50% to over 60 nations. The administration maintains that these actions are aimed at protecting American industries and jobs.
However, analysts note that such measures have strained relations with key trading partners, including China and Mexico. Recent tariff expansions also contributed to a sharp decline in risk assets, with the crypto market experiencing heavy losses during the last downturn.
China Talks Offer Temporary Optimism
Despite the Canada fallout, the White House confirmed plans for a U.S.–China summit later this month. Press Secretary Karoline Leavitt said the meeting would take place in Washington and mark the first direct talks between Trump and Chinese President Xi Jinping since his return to office.
The meeting raises hopes of easing ongoing trade tensions that have weighed on global markets. According to Bloomberg Economics, there is an 80% probability of reaching a preliminary tariff agreement by November 10. Market watchers suggest that any progress could offer temporary relief to crypto investors navigating the current volatility.
Market Reaction And Crypto Outlook
The crypto market has reacted cautiously to Trump’s announcement. Prices of major cryptocurrencies, including Bitcoin and Ethereum, saw mild fluctuations as traders assessed potential policy outcomes. Analysts say any extension of trade conflicts could drive risk aversion, pushing investors toward safer assets in the short term.
Meanwhile, optimism remains tied to the upcoming U.S.–China meeting. A favorable outcome could stabilize global sentiment and encourage a recovery across risk markets, including digital assets. As of now, traders continue to monitor the geopolitical landscape, which remains a key factor in crypto price movement.
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