Tariff Delay Jolts Crypto Market into the Stratosphere
Bitcoin jumped over 6% on Thursday following U.S. President Donald Trump’s announcement of a one-month delay in auto tariffs on Mexico and Canada. The leading cryptocurrency last changed hands at about $92,535, a week-on-week 8% gain.
The measure provides temporary relief for car companies under the United States-Mexico-Canada Agreement (USMCA). Retaliatory tariffs, however, are nevertheless set to be implemented on April 2.
White House Confirms One-Month Suspension
White House Press Secretary Karoline Leavitt stated on Wednesday, “We are going to give a one-month exemption on any autos going through USMCA.”.
She said while the reciprocal tariffs are still scheduled for April 2, the exemption was granted after negotiations with big automakers. Automakers including Ford, General Motors, and Stellantis NV complained about the sudden economic impact of the tariffs.
Even auto parts eligible under terms of the trade pact are delayed, according to Bloomberg.
Markets React to Tariff Reprieve
The tariff delay provided a short-lived lift to financial markets, alleviating fears of near-term trade disruptions. Bitcoin’s steep price jump reflects growing investor optimism, as investors interpret the delay as a sign of potential economic stability.
Other cryptocurrencies also gained ground, with Ethereum and Solana gaining 6%, and XRP gaining 4%.
Uncertainty Remains with More Tariffs Looming
Despite the temporary respite, Trump’s government announced further tariffs would be implemented as early as April 2. The measures are aimed at pressuring trade partners into renegotiating economic agreements but might also spark a worldwide trade war.
Investors now await this Friday’s crypto summit, during which regulatory announcements and institutional patterns of adoption have the potential to dictate Bitcoin’s next price direction. As macroeconomic and geopolitical dynamics dominate headlines, traders remain on guard against the future direction of digital currencies.
