TLDR
- Trump confirms tariffs on Canada and Mexico will go into effect as scheduled
- The 25% tariffs on Mexican and Canadian imports were temporarily postponed for 30 days
- Trump’s administration is also planning restrictions on Chinese tech investments
- Global markets are showing caution with treasury yields dropping to two-month lows
- Both Canada and Mexico had previously announced plans for retaliatory tariffs
President Donald Trump has confirmed that his administration will proceed with sweeping tariffs on imports from Canada and Mexico when the month-long delay on their implementation expires next week. “The tariffs are going forward on time, on schedule,” Trump stated during a White House press conference on February 24, 2025.
The tariffs, which were first announced on February 1, include a 25% duty on products from both Mexico and Canada, as well as an additional 10% tariff on Canadian energy imports. Trump had temporarily paused these tariffs on February 3 after both Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau made commitments to increase border security efforts.
During the press conference, Trump claimed that the United States has “been taken advantage of” by foreign nations on “just about everything.” He restated his intent to impose what he calls “reciprocal tariffs” on trading partners. “So the tariffs will go forward, yes, and we’re going to make up a lot of territory,” Trump added.
The initial executive orders for these tariffs were based on what Trump described as failures by both Mexico and Canada to stop crime and drug trafficking at their borders with the United States. The temporary pause was meant to allow time for negotiations with Mexico and to pursue what Trump called a “final Economic deal with Canada.”
This move comes during Trump’s first month back in office, a period marked by aggressive trade policy decisions. Earlier in February, his administration imposed 10% tariffs on Chinese imports and announced plans for broader “reciprocal tariffs” on American trading partners.
China has already responded with its own targeted tariffs on U.S. imports, raising concerns about a potential trade war between the two economic powers. Similar worries exist regarding Canada and Mexico, who rank among America’s closest allies and top trading partners.
Before Trump paused the tariffs, both the Canadian and Mexican governments had announced their intentions to implement retaliatory tariffs on American imports, suggesting a possible cycle of escalating trade barriers.
The confirmation of these tariffs comes amid broader actions targeting international trade and investment. Trump’s administration is also working on new restrictions for Chinese investments in U.S. technology and energy sectors, and is pressuring allies to strengthen their own restrictions on China’s semiconductor industry.
Global Markets
These policy moves have created ripples in global markets. As of February 25, 2025, Europe’s Stoxx 600 benchmark showed little movement, while U.S. equity futures pointed toward a lower open following a technology-led selloff on Wall Street. Asian stocks fell for the second consecutive day, while safer investments like gold held near record highs.
Financial experts have expressed concern about the economic impact of these trade policies. “The continued signaling of new tariffs introduces unnecessary volatility into the markets,” said Rajeev De Mello, a global macro portfolio manager at Gama Asset Management. “A more accelerated U.S. retreat from global leadership raises risks for multinational corporations and global investors that have long benefited from a stable, rules-based international order.”
Trump administration officials recently met with Japanese and Dutch counterparts about restricting Tokyo Electron Ltd. and ASML Holding NV engineers from maintaining semiconductor equipment in China, according to sources familiar with the discussions. This follows a directive that strengthens the Committee on Foreign Investment in the United States (CFIUS), a panel that reviews foreign purchases of U.S. companies or property.
Crypto Market
Bitcoin plunged below $90,000 on February 25, 2025, dropping to $87,630 after breaking out of an ascending broadening wedge pattern.
The 6.78% decline came amid multiple market pressures, including President Trump’s confirmation of 25% tariffs on Canadian and Mexican imports starting March 4, a massive $1.5 billion hack at the Bybit platform, and continued outflows from Bitcoin ETFs exceeding $500 million for the second consecutive week.
BTC Price
The sell-off extended across the entire cryptocurrency market, with Ethereum falling to $2,375, breaking below its key support range of $2,600-$2,800. Other altcoins suffered even steeper declines—Solana dropped 14.85% to $143.13, XRP fell 10.85% to $2.30, and Cardano lost 10.96%, trading at $0.6859.
The market-wide turbulence resulted in nearly $800 million in leveraged positions being liquidated in just 24 hours, with long positions accounting for approximately $600 million of the total.
This dramatic downturn erased much of the optimism that followed Trump’s election victory in November, when cryptocurrency markets rallied on expectations of crypto-friendly policies, highlighting how quickly sentiment can shift in the volatile digital asset space.
Supply Chain Concerns
Some market analysts worry about the effects on technology supply chains. “If these orders were to go into effect, there is a risk that AI supply chains could be impacted,” noted Charu Chanana, chief investment strategist at Saxo Markets Pte.
Trump has also made shifts in foreign policy, withdrawing U.S. condemnation of Russia’s 2022 invasion of Ukraine at the United Nations and among Group-of-Seven countries as part of his stated aim to end the war on terms that Moscow would accept.
The announcement of the tariffs moving forward was made during a joint press conference with French President Emmanuel Macron at the White House, held on the third anniversary of Russia’s full-scale military invasion of Ukraine.
In oil markets, prices edged higher as investors assessed a fresh wave of U.S. sanctions on Iran. Meanwhile, Bitcoin fell for the third consecutive day, along with other cryptocurrencies like Ether, Solana, and Dogecoin, as the sector continues to struggle following what has been described as its biggest-ever hack last week.
Trump’s tariff decisions represent a continuation of the trade policies he pursued during his first term, when he frequently used tariffs as both a negotiating tool and a revenue source for the United States government.
