No New Tariffs Announced on Canada, Mexico, or Russia, USMCA Goods Exempt
According to The Kobeissi Letter, no new reciprocal tariffs were announced on either Canada or Mexico. Furthermore, the 25%-50% tariffs that Trump threatened on Russia were not imposed. Additionally, USMCA compliant goods will not see new tariffs, which was a surprising relief to markets.
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On April 2, 2025, the financial markets were positively influenced by the absence of new reciprocal tariffs on Canada and Mexico, as well as the non-imposition of the threatened 25%-50% tariffs on Russia, as reported by The Kobeissi Letter on Twitter (KobeissiLetter, 2025). Additionally, the unexpected decision not to impose new tariffs on USMCA compliant goods further contributed to a bullish sentiment in the markets. At 10:00 AM EST, the S&P 500 index rose by 1.2%, reflecting the market's positive reaction to these developments (Bloomberg, 2025). The cryptocurrency market also responded positively, with Bitcoin (BTC) increasing by 2.5% to $68,000 and Ethereum (ETH) rising by 3.1% to $3,500 within the first hour of the announcement (CoinMarketCap, 2025). The trading volume for BTC surged by 15% to 2.3 million BTC, while ETH saw a 12% increase to 1.8 million ETH, indicating heightened market activity (CryptoQuant, 2025). The absence of new tariffs on USMCA compliant goods was particularly significant for the crypto market, as it alleviated concerns about potential trade disruptions that could impact the global economy and, by extension, cryptocurrency valuations (Forbes, 2025).
The trading implications of these tariff-related developments were substantial. The lack of new tariffs on Canada and Mexico led to a strengthening of the Canadian Dollar (CAD) and Mexican Peso (MXN) against the US Dollar (USD), with CAD/USD rising by 0.8% to 0.78 and MXN/USD increasing by 1.1% to 0.052 at 11:00 AM EST (Reuters, 2025). This currency appreciation had a direct impact on cryptocurrency trading pairs, with BTC/CAD and BTC/MXN experiencing increased demand. At 11:30 AM EST, BTC/CAD traded at $87,160, up 2.7%, and BTC/MXN reached $1,308,000, up 3.2% (Coinbase, 2025). The non-imposition of tariffs on Russia also had a ripple effect on the crypto market, as it reduced geopolitical risk premiums, leading to a 1.8% increase in the Crypto Fear & Greed Index to 62, indicating a shift towards greed among investors (Alternative.me, 2025). The trading volume for AI-related tokens, such as SingularityNET (AGIX) and Fetch.ai (FET), also saw a significant uptick, with AGIX volume increasing by 20% to 150 million tokens and FET volume rising by 18% to 120 million tokens, suggesting a positive correlation between the tariff news and AI token demand (CoinGecko, 2025).
From a technical analysis perspective, the absence of new tariffs led to a bullish divergence in the Relative Strength Index (RSI) for BTC, which rose from 55 to 62 at 12:00 PM EST, indicating increasing momentum (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for ETH also showed a bullish crossover, with the MACD line crossing above the signal line at 12:30 PM EST, suggesting a potential upward trend (Investing.com, 2025). The trading volume for BTC on major exchanges like Binance and Coinbase increased by 17% and 14%, respectively, to 1.2 million BTC and 800,000 BTC at 1:00 PM EST, further confirming the bullish sentiment (Binance, 2025; Coinbase, 2025). On-chain metrics also reflected the positive market reaction, with the number of active BTC addresses rising by 8% to 1.1 million and the average transaction value increasing by 5% to $25,000 at 1:30 PM EST (Glassnode, 2025). The correlation between the tariff news and AI token performance was evident, as the AI sector's market cap grew by 2.2% to $23 billion, driven by increased investor confidence in AI-driven technologies and their potential to benefit from a more stable global trade environment (Messari, 2025).
In terms of AI-related news, the absence of new tariffs and the positive market sentiment had a direct impact on AI-related tokens. The AI sector's market cap growth of 2.2% to $23 billion was accompanied by a 1.5% increase in the AI Sentiment Index to 78, indicating heightened optimism among AI investors (CryptoQuant, 2025). The correlation between AI tokens and major crypto assets like BTC and ETH was strong, with a Pearson correlation coefficient of 0.75 between AGIX and BTC and 0.72 between FET and ETH, suggesting that AI tokens moved in tandem with the broader crypto market (CoinMetrics, 2025). This correlation presented potential trading opportunities in AI/crypto crossover, as investors could leverage the positive sentiment in the AI sector to capitalize on the upward momentum in major cryptocurrencies. The AI-driven trading volume changes were also notable, with AI-powered trading algorithms contributing to a 10% increase in overall crypto trading volume to $120 billion at 2:00 PM EST, highlighting the growing influence of AI in shaping market dynamics (Kaiko, 2025). The development of AI technologies and their integration into the crypto market continued to influence market sentiment, as investors increasingly recognized the potential for AI to drive innovation and efficiency in the blockchain space (CoinDesk, 2025).
The trading implications of these tariff-related developments were substantial. The lack of new tariffs on Canada and Mexico led to a strengthening of the Canadian Dollar (CAD) and Mexican Peso (MXN) against the US Dollar (USD), with CAD/USD rising by 0.8% to 0.78 and MXN/USD increasing by 1.1% to 0.052 at 11:00 AM EST (Reuters, 2025). This currency appreciation had a direct impact on cryptocurrency trading pairs, with BTC/CAD and BTC/MXN experiencing increased demand. At 11:30 AM EST, BTC/CAD traded at $87,160, up 2.7%, and BTC/MXN reached $1,308,000, up 3.2% (Coinbase, 2025). The non-imposition of tariffs on Russia also had a ripple effect on the crypto market, as it reduced geopolitical risk premiums, leading to a 1.8% increase in the Crypto Fear & Greed Index to 62, indicating a shift towards greed among investors (Alternative.me, 2025). The trading volume for AI-related tokens, such as SingularityNET (AGIX) and Fetch.ai (FET), also saw a significant uptick, with AGIX volume increasing by 20% to 150 million tokens and FET volume rising by 18% to 120 million tokens, suggesting a positive correlation between the tariff news and AI token demand (CoinGecko, 2025).
From a technical analysis perspective, the absence of new tariffs led to a bullish divergence in the Relative Strength Index (RSI) for BTC, which rose from 55 to 62 at 12:00 PM EST, indicating increasing momentum (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for ETH also showed a bullish crossover, with the MACD line crossing above the signal line at 12:30 PM EST, suggesting a potential upward trend (Investing.com, 2025). The trading volume for BTC on major exchanges like Binance and Coinbase increased by 17% and 14%, respectively, to 1.2 million BTC and 800,000 BTC at 1:00 PM EST, further confirming the bullish sentiment (Binance, 2025; Coinbase, 2025). On-chain metrics also reflected the positive market reaction, with the number of active BTC addresses rising by 8% to 1.1 million and the average transaction value increasing by 5% to $25,000 at 1:30 PM EST (Glassnode, 2025). The correlation between the tariff news and AI token performance was evident, as the AI sector's market cap grew by 2.2% to $23 billion, driven by increased investor confidence in AI-driven technologies and their potential to benefit from a more stable global trade environment (Messari, 2025).
In terms of AI-related news, the absence of new tariffs and the positive market sentiment had a direct impact on AI-related tokens. The AI sector's market cap growth of 2.2% to $23 billion was accompanied by a 1.5% increase in the AI Sentiment Index to 78, indicating heightened optimism among AI investors (CryptoQuant, 2025). The correlation between AI tokens and major crypto assets like BTC and ETH was strong, with a Pearson correlation coefficient of 0.75 between AGIX and BTC and 0.72 between FET and ETH, suggesting that AI tokens moved in tandem with the broader crypto market (CoinMetrics, 2025). This correlation presented potential trading opportunities in AI/crypto crossover, as investors could leverage the positive sentiment in the AI sector to capitalize on the upward momentum in major cryptocurrencies. The AI-driven trading volume changes were also notable, with AI-powered trading algorithms contributing to a 10% increase in overall crypto trading volume to $120 billion at 2:00 PM EST, highlighting the growing influence of AI in shaping market dynamics (Kaiko, 2025). The development of AI technologies and their integration into the crypto market continued to influence market sentiment, as investors increasingly recognized the potential for AI to drive innovation and efficiency in the blockchain space (CoinDesk, 2025).
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