Bitcoin Surges Amid Trump's Tariff Threat

Bitcoin rebounded above $79,000 on Monday after briefly dipping toward $78,200 following President Donald Trump's threat to impose 50% tariffs on Canadian vehicles, automotive parts and steel starting Jan. 1, 2027.

The cryptocurrency traded near $79,300 at the time of writing, up more than 2% over the previous 24 hours, as buyers quickly absorbed the initial sell-off triggered by the announcement.

The president's threat escalated an already contentious trade dispute between Washington and Ottawa. Trump claimed that Canada conducts '95% of its business with the United States,' although official trade data shows that more than three-quarters of Canadian goods exports go to the U.S., and almost half of its imports come from there.

The Treasury's expansion of liquidity-support buybacks for longer-dated government securities, which will increase the number of long-end operations from two to four per quarter through Nov. 4, also contributed to Bitcoin's recent advance.