As Lao Dong reported, on February 1, President Donald Trump signed a decree imposing a 25% tax on imports from Canada and Mexico, but then postponed it for 30 days waiting for feedback from the two countries on the issue of fentanyl smuggling and human trafficking activities into the US. After the postponement, this tax rate will officially be implemented from 4.3 (Vietnam time).
President Trump also imposed a additional 10% tax on imports from China, raising the total tax rate for the country to 20%, to control the illegal drug crisis.
Immediately after this statement, the US stock market plummeted, leading to a sell-off in the cryptocurrency market, sweeping billions of USD worth both markets.
As for Bitcoin and major altcoin, it completely reversed the skyrocketing increase after Mr. Trump announced the establishment of a crypto reserve fund for the US including BTC, ETH, XRP, SOL and ADA.
However, less than 24 hours after the official tax declaration took effect and appeared on FOX Business, US Commerce Secretary Howard Lutnick said that both Mexico and Canada had been proactive in contacting him throughout the day to find a way to negotiate the new tariffs.
He stressed that President Trump is listening and ready to seek a reasonable solution for the two neighboring countries. However, Lutnick insists that there will be no temporary import suspension, but a "balanced" deal could be reached if the parties make a concession.
This statement caused both the stock and digital markets to flourish.
Bitcoin price at the time of writing is being traded at 87,188 USD, up more than 4% compared to the bottom of 81,500 USD last night, even approaching the 89,000 USD mark at times after approval from Mr. Lutnick.
Other major altcoin markets have also recorded recoveries ranging from 5% to over 20%.
In Vietnam, representatives of the State Bank have repeatedly sent out the message: Bitcoin and other similar virtual currencies are not legal currencies and payment methods.
However, in the recently issued Directive No. 05/CT-TTg, Prime Minister Pham Minh Chinh directed the Ministry of Finance and the State Bank to submit a proposal for a legal framework on digital currency in March.
