This is the tariff war and those countries that are "attacked" are also hitting back. Last I checked Canadians have announced that they will also implement 25% tariffs on goods imported from the colony.
At the end of the day while governments are increasing their revenues from these tariffs, the regular people will suffer because they will have to pay more money for the same exact goods!
We should also keep an eye on inflation because that is starting to rise very rapidly and that can affect bitcoin price positively.
But honestly, I don't think Canada and Mexico have the stamina and strength to be able to stand up to Trump in a prolonged tariff war. Because the United States is their largest partner and accounts for 75%-80% of Canada and Mexico's total exports of goods and services. Meanwhile, the volume of goods exported from the US to these two countries is not too large and imposing tariffs on each other will cause them to suffer much more serious damage than the US.
China is the only country that can confront the US in this trade war because China has sought to diversify its partners over the past 4 years and is no longer heavily dependent on the US market. If I remember correctly, the United States only accounts for 15% of China's total merchandise exports. Not to mention, by going to war with many countries at once, Trump's tariff strategy could backfire instead of benefiting him as he thinks.
In the long run, rising inflation will benefit bitcoin but short term volatility is inevitable and that is exactly what is happening.