The United States, Canada, and Mexico have reached key agreements to enhance border security and curb illegal drug trafficking and immigration following a pivotal phone conversation between U.S. President Donald Trump and the leaders of both neighboring nations. The move comes as part of broader negotiations, which also led to a temporary pause on new tariffs, fueling a rapid rebound in cryptocurrency markets.
Tariff Freeze Triggers Market Optimism
In a Feb. 3 announcement on X, Canadian Prime Minister Justin Trudeau confirmed that a proposed 25% tariff hike targeting Canada and Mexico would be suspended for at least 30 days. The decision followed discussions with Trump, during which both countries committed to deeper cooperation on trade and security measures.
The impact on financial markets was immediate. Bitcoin (BTC) surged past the $100,000 mark, reaching $101,731 after dipping to $92,000 just a day earlier, Ether (ETH) rebounded strongly from a Feb. 2 low of $2,451, climbing back to $2,880. The Crypto Fear & Greed Index reflected the shifting sentiment, soaring into the “greed” zone with a score of 72 out of 100 after previously languishing in “fear” territory.
The crypto market had been rattled on Feb. 3 after Trump announced fresh tariffs targeting China, Mexico, and Canada, leading to an estimated $10 billion in liquidations. However, with the temporary hold now in place, traders are regaining confidence.
Canada and Mexico Pledge Tougher Border Controls
Beyond the tariff pause, Trudeau outlined Canada’s $1.3 billion border security initiative, aimed at strengthening cooperation with the U.S. The plan includes appointing a Fentanyl czar, officially designating certain cartels as terrorist organizations, and deploying helicopters and additional personnel along the U.S.-Canada border.
Meanwhile, Mexico has also secured a temporary tariff reprieve. President Claudia Sheinbaum stated on X that she and Trump had “reached a series of agreements” to bolster security along the shared border, with Mexico committing additional resources to enforcement efforts.
“Our teams will begin working today on two fronts: security and trade. They are pausing tariffs for one month from now,” Sheinbaum confirmed.
However, in a Feb. 3 interview with Bloomberg TV, Trump maintained that no final agreement had been reached on tariffs with Mexico, leaving the possibility open for enforcement after the 30-day suspension.
As negotiations continue, the crypto market remains highly responsive to global trade developments. For now, the reprieve has injected a fresh wave of optimism, but further volatility could emerge as geopolitical and economic discussions unfold.