Canada’s tariffs spark global trade unrest and catch the eye of the crypto

China has announced additional tariffs on Canadian imports, expanding trade disputes. The move comes as a response to previous Canadian tariffs on Chinese products.

The tariffs scheduled to take effect on March 20, 2025 will target Canadian products, including a 100% tariff on rapeseed oil, oil cakes and peas, and a 25% tariff on aquatic products and pork.

Trade wars heat up: China and Canada exchange tariffs hit

The growing trade dispute between China and Canada unfolded after Canada imposed tariffs on Chinese products aimed at Chinese trade practices. In retaliation, China shifted its focus to Canada’s exports.

This new tariff follows a pattern of rising tensions in global trade. Similarly, the US also expanded its trade war to include the European Union, Mexico, Canada and South Korea. The US actions are spurred by national security concerns related to imports and by attempts to address what is considered unfair trade practices.

Related: Trump and Trudeau talks: Will tariffs be lifted today?

A slowdown in global trade and market volatility continues with tariff hikes

Global impact on trade and economy: The impact of these tariffs is already evident in global markets. World trade flows are slowing down and stock markets are experiencing volatility as countries such as China and the US continue to enforce tariff and non-tariff barriers.

While companies in the manufacturing sector in particular face rising costs, producers and suppliers are forced to look for alternative markets to minimize the impact of tariffs.

Crypto Market is seeing unexpected lifts

Interestingly, despite this trade chaos, certain sectors are experiencing unexpected changes. Interest has increased slightly, particularly in the crypto market, as it may potentially be linked to debates surrounding the US government’s proposal for the National Cryptocurrency.

Under President Trump’s leadership, the United States has announced plans for mutual tariffs aimed at almost all US trade members. These tariffs, scheduled to be released on April 2, 2025, address the White House’s consideration of unfair trade policies from countries such as the European Union, Canada and South Korea.

Related: China vs. Trump’s tariff: Global market shakes, Crypto beckons

However, Senior Trade Advisor Peter Navarro confirmed that inverse tariffs are certain with the aim of restructuring the relationship between the United States and its global trading partners. The full scope of these tariffs is still unknown, but the impact could be far-reaching, especially for US companies that rely on international trade.