Canadian Prime Minister Mark Carney has announced that Canada will impose dollar-for-dollar retaliatory tariffs on US goods after trade negotiations with Washington failed. The move follows US President Donald Trump’s decision to introduce a 50% tariff on approximately $20 billion to $28 billion worth of Canadian exports, including steel, aluminium, and automotive products. Trump attributed the action to long-standing trade disputes between the two nations.
Trade tensions escalate between US and Canada
Carney addressed the public after talks broke down, stating that Canada would “match US tariffs dollar-for-dollar,” signaling a shift away from the country’s previous restraint in response to US trade measures. The Canadian government made it clear it will no longer “absorb this pressure quietly,” ending what officials described as a period of muted response to US trade policies.
Markets including gold, oil, the S&P 500, and cryptocurrencies showed limited immediate reaction to the trade conflict between the two countries, with analysts noting that the standoff is still developing and may soon have broader international repercussions if other nations follow Canada’s lead.
So far, financial markets have shown little volatility in response, as investors appear to view the dispute as contained. However, economic strategists are warning that if more countries adopt retaliatory measures, the impact may soon extend beyond North American borders, potentially triggering wider market shifts.
Arthur Hayes calls Bitcoin bull market
Arthur Hayes, co-founder and former CEO of cryptocurrency derivatives exchange BitMEX, claimed this week that Bitcoin has entered a new bull market. Hayes attributed the reversal in sentiment to recent US debt management policies, which he said are discreetly increasing dollar liquidity in global markets.
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Hayes has made accurate macro-driven predictions in the past around Bitcoin’s price cycles. He suggested the current environment could accelerate Bitcoin’s upward trajectory, although some analysts caution the rally may still be in its early phase.
Bitcoin and other cryptocurrencies did not react notably to the escalating US-Canada trade friction, and Hayes’s bullish commentary focused instead on broader macroeconomic shifts affecting digital assets.
Major developments in crypto and AI
Digital banking platform Revolut launched its first euro-backed stablecoin, EURR, this week, enabling millions of European users to move both euros and cryptocurrencies on-chain within its familiar app environment. The rollout comes amid sweeping regulatory changes under the Markets in Crypto-Assets (MiCA) framework in the European Union.
Binance, the world’s largest cryptocurrency exchange by trading volume, has designated DJTB—a tokenized security from Trump Media—as eligible margin collateral for qualified traders, reflecting rising integration of political brand tokens into mainstream cryptocurrency trading.
City Protocol, an emerging blockchain infrastructure provider focused on structured investment products, completed an $11 million funding round. The initiative aims to support the increasing demand for institutional activity on-chain, facilitating new investment vehicles and asset management products in the decentralized finance space.
In a cybersecurity update, threat intelligence platform Salus traced the August 13 theft of $550,000 in USDC from a user of Hyperliquid—a decentralized derivatives exchange—to phishing infrastructure operated by Inferno Drainer. This malicious toolkit has been linked to significant cryptocurrency thefts in recent years.
Mini dictionary: Inferno Drainer is a phishing-as-a-service operation that provides cybercriminals with tools to steal cryptocurrencies from user wallets through deceptive links. Security firms have associated Inferno Drainer with several high-profile crypto heists.
| Event | Asset/Project | Key Detail |
|---|---|---|
| Funding | City Protocol | $11 million raised |
| Collateral Addition | DJTB (Trump Media Token) | Added as margin collateral (Binance) |
| Security Breach | USDC (Hyperliquid user) | $550,000 stolen (linked to Inferno Drainer) |
| Stablecoin Launch | Revolut EURR | First euro-backed stablecoin; MiCA context |
In artificial intelligence, Microsoft co-founder Bill Gates is reportedly seeking a meeting with Chinese President Xi Jinping to discuss international cooperation on mitigating the risks of advanced AI systems. Tensions between the US and China remain high, but Gates is attempting to achieve diplomatic progress where formal channels have stalled.
Market movements: Bitlayer rises, Velvet slides
Bitlayer (BTR) experienced a rally driven by high speculative activity, surging trading volumes, and momentum-based spot buying. By contrast, Velvet (VELVET) faced a decline after sharp liquidations of leveraged positions and profit-taking by traders following previous gains.
