Trump's Tariff Turbulence: A New Trade Storm Looms?

The U.S. dollar strengthened as President Trump announced new tariffs, impacting Canada, the EU, and other trading partners. The Canadian dollar weakened, and global markets responded with unease. Investors are concerned about the lasting effects on global trade, while cryptocurrencies showed resilience with significant gains.

The U.S. dollar experienced a surge on Friday, buoyed by disruptions on the global trade front, following President Donald Trump's announcement of new import tariffs. These included a dramatic 35% tariff on Canada and blanket levies of 15% or 20% on most trading partners.

This unexpected move shook investors who anticipated an upcoming economic and security agreement between the U.S. and Canada. The Canadian dollar fell against the U.S. currency, recording a 0.22% decrease by trading at C$1.369. Simultaneously, the euro dropped by 0.1% to $1.1688 as talks of tariffs with the European Union caused market anxieties.

In Asia, the yen declined by 0.41% amid a 25% tariff on Japan, while Brazil also faced tariff threats. Despite these turbulent trade relations, cryptocurrencies like Bitcoin witnessed a notable climb, showcasing investor interest and optimism toward U.S. crypto-friendly policies.

(With inputs from agencies.)