Recent data from Polymarket indicates a significant 70% probability that the trade conflict between the United States and Canada will conclude by May. The U.S. government, led by President Donald Trump, imposed a 25% tariff on goods imported from Canada and Mexico on Tuesday. However, statements from U.S.
Commerce Secretary Lutnick have opened the door to potential negotiations. This development has eased market tensions and increased the likelihood of a resolution by 20% in a short period. Lutnick expressed that President Trump is keen on reaching a comprehensive agreement with Canada and Mexico instead of merely suspending tariffs.
This new course of action has had a notably positive impact on the cryptocurrency market, with Bitcoin surpassing the remarkable benchmark of $87,000. Earlier, comments made by Lutnick suggested that the Trump administration might announce a strategy to reduce tariffs on Mexican and Canadian goods as soon as tomorrow.
In a recent interview, Lutnick relayed, "Officials from Mexico and Canada have been in continuous dialogue with me today, showing their desire to enhance our trade relations, and the President is receptive to these efforts. I am optimistic that we will come to some agreements, which will be more substantial than just a temporary suspension of tariffs.
I believe President Trump will make concessions in certain areas, and we are likely to have an announcement tomorrow." Lutnick also pointed out that while tariffs might be adjusted to an intermediate level, it is evident that Trump intends to make some compromises with Canada and Mexico without fully retracting from the previous tariff agreements.
This balancing act aims to ensure the U.S. interests are preserved while fostering better trade relations with its North American neighbors, which could ultimately stabilize both the regional economy and the cryptocurrency sector as reactions continue to unfold..