can you tell me more about the tarrifs imposed & why is there a negative sentiment around it?

Overview of U.S. Tariffs on Canada and Mexico

On February 1, 2025, the U.S. imposed a 25% tariff on imports from Canada and Mexico. This decision is rooted in ongoing immigration and trade disputes, and it raises concerns about potential violations of the United States-Mexico-Canada Agreement (USMCA).

Reasons for Negative Sentiment

1. Economic Uncertainty: The tariffs are expected to create significant uncertainty in the North American economy, leading to fears of disrupted supply chains and increased costs for businesses and consumers.

2. Retaliatory Measures: There is a strong possibility that Canada and Mexico may respond with their own tariffs, which could escalate into a trade war, further destabilizing the market.

3. Recession Risks: Analysts warn that these tariffs could contribute to a recession, with potential drops in GDP, job losses, and overall economic slowdown.

4. Higher Costs: The tariffs will likely lead to increased prices for goods, affecting consumers directly and potentially leading to reduced spending.

5. Market Reaction: The combination of these factors has led to a fragile market sentiment, where investors are reacting more negatively to news, contributing to the recent downturn in the cryptocurrency market.

Summary

The imposition of tariffs by the U.S. has created a climate of uncertainty and fear regarding economic repercussions, which has negatively impacted market sentiment, including in the cryptocurrency sector. Investors are advised to remain cautious as the situation develops.