According to a Polymarket contract, there is a 70% chance that the trade war between Canada and the U.S. will come to an end by May. Commerce Secretary Howard Lutnick recently stated on Fox Business that President Donald Trump is open to negotiation, increasing the likelihood of a resolution.
On Tuesday morning, Canada and Mexico faced the implementation of 25% tariffs on all products entering the U.S. President Trump justified this action by citing their failure to address fentanyl trafficking and illegal immigration as a national security threat.
However, later in the day, Commerce Secretary Lutnick expressed optimism about potential negotiations, causing the odds of a resolution to increase by 20% on Polymarket.
Lutnick stated on Fox Business, “I think [Trump is] going to work something out with them. It’s not going to be a pause, none of that pause stuff, but I think he’s going to figure out: you do more, and I’ll meet you in the middle someway and we’re going to probably announce that tomorrow.”
In addition to the potential trade war resolution, Lutnick’s comments also had a positive impact on crypto markets. On ‘Turnaround Tuesday,’ bitcoin (BTC) saw a 1.5% increase and maintained a comfortable trading price above $87,000, according to CoinDesk Indices data.
The CoinDesk 20 (CD20), which tracks the performance of the largest digital assets, also experienced a 2% increase in response to the news.
