Trump Halts Canada & Mexico Tariffs Following Phone Call

Crypto markets surged after President Donald Trump temporarily paused proposed tariffs on Canada and Mexico amidst ongoing negotiations.

In a 3 February statement on X (formerly known as Twitter), Canadian Prime Minister Justin Trudeau confirmed a 30-day suspension following a call with Trump.

He pledged to strengthen US-Canada coordination with a $1.3 billion border plan, appoint a Fentanyl czar, classify cartels as terrorist organisations, and deploy helicopters and additional personnel.

Mexico’s tariffs were also paused for a month, with President Claudia Sheinbaum announcing new agreements to reinforce border security.

Sheinbaum said:

“Our teams will begin working today on two fronts: security and trade. They are pausing tariffs for one month from now.”

However, in a Bloomberg TV interview the same day, Trump stated that a final deal with Mexico had not been reached and tariffs could still take effect.

On Truth Social, Trump also posted about the phone call between Trudeau and Sheinbaum.

Crypto Market Rebounds, Stops Bleeding Red

The crypto market is rallying following major policy announcements by world leaders.

Bitcoin has surged past the $100,000 mark, now trading at $99,429.16—up 5.81% in the last 24 hours after hitting a low of $92,000 the previous day, according to CoinMarketCap.

Ether has also rebounded, climbing 7.88% to $2,728.14 after dipping to $2,451 on 2 February.

Pav Hundal, lead market analyst at crypto exchange Swyftx, sees the recent developments as a potential catalyst for new all-time highs.

He noted that yesterday’s outflows were driven by uncertainty, but the tariff pause has shifted investor sentiment from cautious to optimistic, fuelling a “complete recovery in many digital assets.”

He noted:

“If the shadow of tariffs continues to recede, and it is a big 'if,’ all you’re really left with is good news and economic data that you can at least hedge against.”

He added:

“I like Bitcoin’s chances of hitting new all-time highs very quickly in a world where the tariff threat is low, and the US policy environment is so accommodating.”

Sean Dawson, head of research at Derive.xyz, believes the pause on tariffs and a new executive order to establish a US sovereign wealth fund could further support a rebound.

He expressed:

“Trump’s Executive Order to establish a sovereign wealth fund under the Treasury and Commerce departments could signal bullish sentiment for the digital asset space. This is particularly relevant as Commerce Secretary nominee Howard Lutnick has been a strong advocate for the industry.”

Meanwhile, Chris Chung, founder of Solana swap platform Titan, dismissed concerns over tariffs, arguing the market overreacted since “digital transactions aren’t tariffed.”

In the long run, if tariffs persist, he expects they will drive more capital into crypto, given the industry’s deep ties to the US dollar.

He pointed out:

“As people’s home currencies, like the Canadian dollar, plummet against the US dollar, we will see more inflows into both USD-denominated stablecoins and crypto assets like Bitcoin and altcoins. And if the tariffs cause inflation, as many fear they will, then even US investors will seek refuge in cryptocurrency."