TLDR
- Canada to remove the 25% tariff on US consumer goods covered by USMCA.
- Bitcoin surged 3% to over $115,900 following trade policy changes.
- Ethereum jumped 9% to near $4,600 after Canada’s tariff announcement.
- Canadian tariffs on steel and aluminum remain to protect key sectors.
Canada is preparing to remove certain retaliatory tariffs on U.S. goods, which were originally put in place in response to tariff actions during the Trump administration. The move comes at a time of shifting trade relations and has coincided with a surge in cryptocurrency prices. Bitcoin and Ethereum saw major gains as investor confidence rose, with Bitcoin moving past $115,900 and Ethereum climbing over 9%.
Canada to Ease Trade Tensions Amid Cabinet Discussions
Canadian Prime Minister Mark Carney is expected to announce the removal of key retaliatory tariffs on U.S. products. The proposed change will cancel a 25% tariff on several U.S.-produced consumer goods covered under the U.S.-Mexico-Canada Agreement (USMCA). This decision follows multiple high-level cabinet meetings focused on trade stability.
The updated approach is seen as part of Canada’s efforts to reduce friction while maintaining key trade protections. According to officials close to the matter, tariffs on U.S. steel, aluminum, and automobiles will remain in place. These industries are considered vital to Canada’s domestic economy and job market.
BREAKING: 🇨🇦 🇺🇸 CANADA WILL REMOVE RETALIATORY TARIFFS ON MANY U.S. GOODS.
BULLISH FOR MARKETS 🚀 pic.twitter.com/ifB3VwOFYt
— Ash Crypto (@Ashcryptoreal) August 22, 2025
Carney had earlier warned of possible retaliatory steps after the Trump administration raised tariffs on Canadian steel and aluminum. However, Canada did not match U.S. actions when Washington also raised duties on fentanyl-related Canadian exports. Ottawa instead focused on trade talks and regional agreements.
Crypto Market Responds With Strong Rally
Following reports of Canada’s tariff reversal, the cryptocurrency market showed strong growth. Bitcoin rose over 3% in one day, surpassing $115,900 after earlier dropping near $112,000. Ethereum gained over 9% and traded close to $4,600, driven by stronger demand and renewed market interest.
Investors responded positively to the trade developments, seeing digital assets as an alternative during uncertain trade negotiations. Analysts said the timing of the rally suggests increased demand for digital assets during changing global policy events.
Over the past 12 months, Bitcoin has gained more than 89%, with a year-to-date increase of over 24%. Ethereum has shown a sharper climb, gaining over 75% since last year and around 39% in 2025 alone. These figures reflect continued investor interest in crypto assets as part of broader financial strategies.
Trade Stability Seen as Key Driver of Market Confidence
Economists and market observers pointed to improved trade expectations as one reason behind the market surge. According to Bloomberg, Canadian officials are aiming to balance domestic protection with regional cooperation under the USMCA. A softer trade stance is being read as a shift from past tensions under Trump-era tariffs.
“Canada is preserving room to protect sensitive industries while easing pressure where it is no longer seen as productive,” one official said. The change in approach may help reduce uncertainty, which has affected both traditional and digital markets in recent years.
Despite the long period of trade disputes, Canada’s inflation has remained within control. Statistics Canada reported that consumer prices rose 1.7% in July, staying below the Bank of Canada’s 2% target. This has allowed the government some space to adjust trade strategies without adding pressure on the local economy.
Market analysts are watching for official confirmation from the Prime Minister’s Office in the coming days. Further updates are expected after Canada concludes its latest round of cabinet meetings on economic and trade policy.
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