U.S. Trade Policy Update

U.S. Commerce Secretary Howard Lutnick announced that President Trump may soon reverse tariffs on Canadian and Mexican goods after intensive negotiations with both nations, hinting at a compromise in trade policy.

This could reduce recently imposed 25% tariffs, prompting a nearly 1% rise in the largest tech stock ETF and a bounce in index futures. The news followed two days of sharp declines in the stock market, driven by fears of a potential trade war.

Specifics Not Revealed!

While Lutnick did not provide precise details on Trump’s plans, he indicated that the president is willing to find common ground with both countries. He emphasized that any agreement requires Canada and Mexico to address issues highlighted by Trump, asserting that “the President is fair and reasonable” but insists they must “do more” for tariff relief.

These discussions occurred just hours before Trump’s planned primetime speech to Congress.

Trump Threatens EU Tariffs

Trump has historically defended tariffs as negotiation tools, claiming insufficient measures by Canada and Mexico to combat drugs and crime entering the U.S. However, economic pressures may lead the administration to modify its stance.

In February, tariffs on China were imposed, inciting retaliatory actions that saw Chinese tariffs rise to 20% on U.S. imports. Following this, Trump threatened to impose new tariffs on the EU, potentially extending trade conflicts further.

Impact on the Crypto Market

The announcement regarding tariffs also affected the cryptocurrency market, causing Bitcoin to dip over 9%. However, in the past 24 hours, Bitcoin has recovered to $87,723, seeing an increase of over 4%. Other altcoins, such as Ethereum and XRP, also saw gains of 5% to 22%.

The crypto market cap has neared $4 trillion, up 4% from recent lows. Stocks related to the crypto sector have also gained: MicroStrategy is up 9.55%, Coinbase by 3.22%, and Marathon Digital has risen 1.34%. These stock movements reflect the market’s response to changing policies impacting the cryptocurrency landscape.