After the U.S.'s two neighboring countries agreed to take harsher measures against border immigration and drug trafficking, U.S. President Donald Trump agreed to delay the imposition of a 25% tariff on goods from Canada and Mexico for one month, temporarily avoiding the outbreak of a full-scale trade war. U.S. stocks closed on Monday (2/3) recovering from intraday lows. Following a brutal sell-off in the Asian session the previous day, the cryptocurrency market rebounded, with Bitcoin climbing back above $100K, seemingly returning to its levels from early the previous morning.

Canada and Mexico Tariffs Paused for One Month

According to Bloomberg, Canadian Prime Minister Justin Trudeau announced yesterday that the Canadian government had made some concessions. Canada will appoint a new fentanyl czar, designate drug cartels as terrorists, and form a joint task force with the U.S. to combat organized crime, drug trafficking, and money laundering. He also signed a new "intelligence directive" concerning organized crime and fentanyl. Trudeau stated that Canada would continue to implement a CAD 1.3 billion (USD 901 million) plan announced in December last year, enhancing border security resources, including helicopters.

Trump, while announcing this initial victory, hinted at tough negotiations ahead: "I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured."

On the other hand, after a conversation with Mexican President Claudia Sheinbaum last night, both leaders announced this morning that the 25% tariffs on Mexico would be postponed for one month. As part of the negotiation, Mexico has agreed to deploy 10,000 soldiers to the U.S.-Mexico border to block illegal immigration and the entry of fentanyl into the U.S.

Bitcoin Returns to $100K, Cryptocurrency Market Stabilizes After Yesterday's Bloodbath

As the risk of a global tariff trade war was mitigated, the cryptocurrency market, which had been severely battered the previous day, began a strong rebound. Bitcoin started to rise after news of de-escalation between the U.S. and Mexico was released last night, reaching $102,000 by 6 AM, fully recovering from the previous day's losses. At the time of writing, it was trading at $101,167, with a 24-hour gain of 7.7%.

The entire cryptocurrency market also nearly stabilized, with all top ten cryptocurrencies by market cap showing gains over the last 24 hours. While prices have seemingly returned to the levels of the previous morning, the crypto community mournfully noted "Price doesn't shift, but your wallet's adrift"

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