Bitcoin climbs back above $79,000 after brief dip tied to U.S. tariff threat on Canadian auto goods

Bitcoin rebounded above the $79,000 psychological level after a brief dip toward $78,200 triggered by President Donald Trump’s announcement of a 50% tariff on Canadian automobiles, auto parts and steel, slated for Jan. 1, 2027.

Tariff announcement and market reaction

Trump posted on Truth Social that the United States would raise tariffs on all Canadian cars, trucks, automotive parts and steel to 50% starting in 2027. The statement came after three days of stalled U.S.–Canada trade talks. Bitcoin fell from just above $79,000 to about $78,200 before buyers pushed the price back up to roughly $79,300, a gain of more than 2% in 24 hours.

Broader crypto inflows

During the same rally, U.S. spot Bitcoin exchange‑traded funds attracted about $1.92 billion over five sessions, with a single‑day inflow of roughly $606 million on Aug. 20. The total assets in U.S. spot Bitcoin ETFs now exceed $90 billion.

Supporting factors beyond the tariff news

The Treasury’s expanded buyback program for long‑dated government bonds, set to begin on Sept. 9, helped lower Treasury yields and coincided with an 8.2% jump in Bitcoin earlier in the week. Short positions worth about $1.44 billion were liquidated across major crypto exchanges during that move.

Trade dispute context

The tariff threat follows the collapse of a proposed agreement that would have reduced the U.S. tariff on Canadian cars and light trucks from 25% to 15% and cut duties on Canadian aluminum and steel from 50% to 25%. Canada has announced retaliatory tariffs on selected U.S. products starting Sept. 8.

Outlook

With the proposed tariffs not taking effect until 2027, the immediate impact on Bitcoin appears limited. However, the ongoing trade tension adds a geopolitical variable that could influence risk sentiment in crypto markets.