Bitcoin Jumps Above $92K as Trump Delays Tariffs on Canada and Mexico

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Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

March 5, 2025

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Bitcoin jumped more than 6% on Thursday following US President Donald Trump’s decision to postpone new tariffs on automobiles from Canada and Mexico for one month.

The asset last traded around $92,535, and is up over 8% in the last week.

The delay offers temporary relief for automakers under the United States-Mexico-Canada Agreement (USMCA). However, reciprocal tariffs are still scheduled to take effect on April 2.

Auto Industry Wins Short-Term Tariff Reprieve as White House Confirms Delay

White House Press Secretary Karoline Leavitt announced Wednesday: “We are going to give a one-month exemption on any autos coming through USMCA.”

“Reciprocal tariffs will still go into effect on April, 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage,” she added.

The exemption also applies to auto parts that meet trade pact requirements, according to Bloomberg. It came after discussions between administration officials and top executives from Ford, General Motors and Stellantis NV. The automakers had raised concerns about the economic impact of immediate tariff enforcement.

Auto Tariff Delay Calms Markets, But More Trade Actions Expected

Despite the short-term relief, the tariff debate is far from over. Trump’s administration has warned that more tariffs, especially on auto imports, could start as early as April 2. The measures aim to pressure trading partners into renegotiating key economic terms. However, they also risk increasing tensions with major global economies.

The delay in tariffs had an immediate effect on financial markets, with Bitcoin seeing a notable surge. Analysts suggest that traders view the postponement as a sign of potential economic stabilization, reducing uncertainty and increasing investor appetite for risk assets, including cryptocurrencies.

The broader crypto market also reacted positively, with key altcoins registering gains alongside Bitcoin. Ether and Solana gained 6%, while XRP jumped 4%.

Market participants are now shifting their focus to Friday’s crypto summit, where industry leaders are expected to discuss regulatory developments and institutional adoption. Traders are closely watching for signals that could shape Bitcoin’s next move as macroeconomic and geopolitical factors continue to influence market sentiment.