The growing conflict between the United States and Canada intensifies as President Donald Trump has signaled a willingness to impose a 100% tariff on imports from Canada if an agreement is reached between Canada and China. This warning appears to foreshadow a significant impact on Bitcoin’s price, a historical pattern seen whenever tariff threats arise.

Earlier today, Trump shared on Truth Social that this action would come into play if Prime Minister Mark Carney agrees to allow Canada to serve as a “drop off port” for shipments headed to the U.S. He explicitly stated:

“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life.”

The notion of a new strategic partnership between Canada and China has recently surfaced, highlighting a preliminary trade deal that may cut tariffs and agree to the import of nearly 50,000 electric vehicles from China under favorable tariff conditions.

Prior to his latest threats, Trump rescinded an invitation for Canada to join his Board of Peace initiative, emphasizing that Canada benefits from its relationships with the U.S.

Historically, tariffs threaten to negatively impact Bitcoin (BTC), particularly under escalating tensions with allied countries, which although seemingly distant, can affect the cryptocurrency market significantly. Recently, when tariffs were announced against several European nations, Bitcoin’s value plummeted from over $95,000 to $87,000 within days.

The market is likely to face further volatility as traders will undoubtedly assess Bitcoin’s price over the next few days amid these developments.