Quote from: CryptoBuds on March 05, 2025, 08:51:37 AM

Quote from: pooya87 on March 05, 2025, 05:53:13 AM

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.

Honestly, it is not about trying to stay alive or anything. Mexico is already a nation that is doing quite tough, and they are not really doing anything to piss everyone off, the tariffs were put on Mexico, not the other way around, they just responded that's it.

Canada on the other hand, they do have money to survive, they can get much much poorer and still hold, sure they would be living in a poor nation if they need to be, but if they want to survive, and not budge, then they can do this forever, it is not about if they can survive, it's about quality of life, they would rather not. But that depends on Trump, and there isn't a "prolonged war" if Democrats win in 2028, they would just remove it, and 4 years is nothing, Canada can wait that long. It would only become a problem if a Republican wins and keeps the tariffs.