Bitcoin recovered above $79,000 after briefly falling toward $78,200 when President Donald Trump threatened 50% U.S. tariffs on Canadian vehicles, automotive parts and steel beginning Jan. 1, 2027. The threat followed the collapse of negotiations between Washington and Ottawa on Aug. 21. Canada plans retaliatory tariffs on selected U.S. products from Sept. 8 in response to existing 50% U.S. duties on about $20 billion of Canadian goods. Bitcoin was trading near $79,300 at the time of writing, up more than 2% over 24 hours and close to its intraday high near $79,900. Its limited reaction contrasts with a roughly 5% decline during an earlier tariff dispute, when Bitcoin lost the $65,000 support level. The latest rally has also been supported by stronger upward momentum, expanded U.S. Treasury buybacks of longer-dated bonds and approximately $1.92 billion of inflows into spot Bitcoin exchange-traded funds across five sessions. The proposed tariffs could raise vehicle costs and disrupt deeply integrated U.S.-Canada supply chains, although industry executives questioned whether the 50% rate would ultimately take effect. More than four months remain before the planned implementation date, leaving room for negotiations to resume.