President Donald Trump has imposed new tariffs on major U.S. trading partners, following through on earlier warnings. The tariffs apply a 25% levy on nearly all imports from Mexico and Canada, along with a 10% tariff on goods from China. These measures take effect on Tuesday.
In an Executive Order explaining the decision, Trump cited the continued entry of illicit opioids and other drugs into the U.S. as a major factor. “The sustained influx of illicit opioids and other drugs has profound consequences on our Nation, endangering lives and putting a severe strain on our healthcare system, public services, and communities,” the order stated.
With traditional financial markets closed over the weekend, the reaction has been felt in cryptocurrency markets. Bitcoin (BTC) has dropped 2%, now hovering just above $100,000 after reaching a high of $106,000 only a day earlier. Traders appear to be reacting to uncertainty surrounding trade relations and potential economic effects.
A senior White House official told the Wall Street Journal that no exemptions will be granted. The tariffs will remain in place until the administration determines that the targeted countries have taken sufficient steps to halt the flow of fentanyl into the U.S.