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  • 🚨Trade Tensions Explode: Canada & Mexico Hit With New Tariffs

🚨Trade Tensions Explode: Canada & Mexico Hit With New Tariffs

Tariffs rising, Bitcoin falling—find out where the market’s headed next.

Today’s trading heat is brought to you by Lark Funding, and today marks 1,000 days since they’ve been in business. 🥳 

☕️ GM Munchers! If Bitcoin had a Tinder bio today, it’d say: ‘Looking for support, but everyone keeps swiping left.

On today’s menu:

  • 🚨 Tariff War Heats Up: U.S. vs. Canada & Mexico

  • 📉 Bitcoin Plunges to $86,500 – What’s Next for the King of Crypto?

  • 😬 Palantir’s Worst Day Since May

  • 🎲 How Much Should You Risk Per Trade?

POLITICS

🚨 Tariff War Heats Up: U.S. vs. Canada & Mexico – What It Means for Markets

Just when we thought the word "tariff" was finally leaving our Instagram feeds (right next to "hot girl summer" and "pumpkin spice"), it’s back.

And not just in a “hey, remember me?” kind of way—markets are starting to feel the shake.

President Trump has decided it’s time to dust off the tariff playbook and slap a fresh 25% tariff on most Canadian goods next week, after a month-long pause.

Oh, and Mexico’s still on his radar too. 🇲🇽 

“The tariffs are going forward on time, on schedule,” Trump declared, making it clear that the month-long delay was just an intermission in this tariff drama.

He even mentioned that the U.S. has been taken advantage of for too long and it’s time to “make up a lot of territory.”

Classic Trump.

The reasoning? 🤔 

  1. A mix of border issues

  2. Fentanyl concerns

  3. And Trump's signature negotiation tactics

Despite Canada tightening border security and Mexico making pledges, Trump’s sticking to the plan and pushing the tariffs through.

💥 So, What Does This Mean for the Markets?

1. Risk Sentiment Takes a Hit 📉 

Tariff talks always get the market sweating. The mention of escalating trade tensions usually leads to a risk-off mood.

Traders run from riskier assets (like equities) and seek safety (think bonds, gold, or even the yen).

This time? The market wobbled, but the reaction was... muted.

2. The Dollar’s Confused 🇺🇲 

Trade tensions can either strengthen the dollar (as a safe haven) or weaken it (if traders believe tariffs will hurt the U.S. economy more than help).

Right now, the greenback is playing both sides—strong in some pairs, weak in others.

For example, it’s been weak against the Yen.

It’s basically that friend who can't decide where to go for dinner.

3. Stocks Are Feeling the Pressure

Markets don’t love uncertainty, and tariffs scream uncertainty.

Stocks took a hit when the news broke, with the S&P 500 and Nasdaq both dipping into the red.

Companies that rely on cross-border trade (especially manufacturing and automakers) are feeling the heat the most.

🔥 But Here’s the Twist…

Every time Trump plays the tariff card, the market reacts less.

It’s like watching a horror movie sequel—after a few jump scares, you’re not as fazed.

Traders are starting to think this is just tough talk and not a real path to a full-blown trade war.

But—and it’s a big but—things can escalate fast.

If Canada or Mexico decide to retaliate (hello, reciprocal tariffs) or if supply chains get disrupted, markets could spiral quickly.

As traders, sure, we’re glued to our screens, but these tariff battles impact real businesses and real people globally.

If things heat up, the ripple effect will hit everyone—and that means big moves in the markets.

🧑‍💻 So, What’s Our Game Plan?

Our interns?

They’re sticking to the lower timeframes, trading what’s in front of them and avoiding the macro drama.

It’s all about staying nimble when headlines like these drop.

But hey, we love volatility—and speaking of that...

Bitcoin is crashing (keep reading below). đŸ“‰ 

PS: If you want to trade this volatility, Lark Funding offers crypto trading on their new 1-Step Pro account with only a 9% target and your first payout is on demand. Use code FEB90 for 9% off and 90% rewards.

CRYPTO

📉 Bitcoin Plunges to $86,500 – What’s Next for the King of Crypto?

Yesterday, we said if risk sentiment bounced back, Bitcoin could be sprinting toward $100K again.

Well… risk sentiment soured faster than milk left out on the counter during a heatwave.

Overnight, Bitcoin hit a low of $86,500, its weakest level in months, leaving traders wondering: Is this the start of a deeper drop, or just another “buy the dip” moment?

💥 What’s Driving BTC’s Drop?

A few things are hitting Bitcoin harder than a liquidation cascade:

  1. Risk-Off Mood: Markets are on edge. Tariff talks, rate hike fears, and geopolitical tensions have traders running to safer assets. BTC, being the ultimate risk-on asset, isn’t exactly the market’s BFF right now.

  1. The ByBit Hack: The $1.4 billion ByBit hack sent shockwaves through the crypto community, shaking confidence in centralized exchanges. While ByBit is back online, the damage to sentiment lingers.

  2. ETF Outflows: U.S. spot Bitcoin ETFs recorded $540 million in outflows last week. That’s a lot of institutional money heading for the exit, signaling fading demand from the big players.

  3. Gold’s Glow-Up: Gold’s been flexing its safe-haven status, hitting all-time highs. With the dollar still strong and rate cuts not yet in sight, investors are parking their cash in gold instead of BTC.

  4. Leverage Unwinding: Kraken reported a spike in long positions as traders “bought the dip,” but with BTC slipping lower, there’s growing risk of liquidations, leading to more selling pressure.

📊 Market Sentiment – Doom or Opportunity?

Despite the plunge, some traders are buying the dip.

Kraken’s long-short ratio hit a record 0.8, showing bullish traders are still out there.

But with BTC teetering on the edge of key support at $86,500, it’s a risky game.

Ethereum hasn’t escaped the carnage either, down roughly 15% this week and threatening a break of key technical support levels.

The entire crypto market feels like it’s walking on a tightrope right now.

🧠 What’s Next?

If BTC can hold $86,500, we could see a relief bounce.

But if that level cracks, $82,000 or even $78,500 could be the next stops.

A sentiment shift—like a rebound in risk appetite or a Fed pivot—could send BTC flying again, but for now, caution rules.

The one upside? Volatility.

And in markets like these, there’s plenty of it.

Whether you’re going long or short, opportunities are everywhere—if you can stomach the swings.

🚀 Pre-Market Fuel

  1. Palantir’s stock just crashed 10% and had its worst day since May. The stock is down 24% in just the last 5 days.

  2. How much should you risk per trade? We disagree with this tweet…

  3. An outline of every major company that’s reporting their earnings this week. Nvidia is on Wednesday and could shake the markets.

🍪 Munchy Memes

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