Global Trade Tensions Surge Amid New U.S. Tariff Announcements

The U.S. dollar rose as President Trump announced new import tariffs, causing uncertainty in global trade. The Canadian dollar and other currencies weakened amid fears of escalation. Meanwhile, bitcoin hit a record high, bolstered by institutional demand and positive U.S. legislative outlooks.

In a surprising move on Friday, the U.S. dollar strengthened significantly, driven by turmoil in the global trade environment, as U.S. President Donald Trump declared new import tariffs. These include a steep 35% on Canadian imports and prospective blanket tariffs of 15% to 20% on numerous trade partners.

Canada, feeling the immediate effects, saw its dollar drop by 0.27% following the announcement. Market analysts, like IG's Tony Sycamore, anticipate a potential escalation, contributing to investors' worries. In Europe, looming tariff letters from the U.S. to the European Union further cloud the outlook on trade negotiations.

As the market closely monitors the development of these measures set for August 1, cryptocurrencies are surging. Bitcoin reached a record high, buoyed by growing institutional interest and optimistic U.S. legislative moves, coinciding with the House's 'Crypto Week' initiatives.

(With inputs from agencies.)