The U.S. dollar surged on Monday after President Donald Trump imposed sweeping tariffs on Canada, Mexico, and China, triggering immediate retaliation from trading partners. Global markets reacted sharply, with the euro plunging, the yuan hitting record lows, and Bitcoin falling below $100,000.
Global financial markets reacted strongly on Monday after U.S. President Donald Trump imposed tariffs on Canada, Mexico, and China, escalating fears of a full-scale trade war.
The U.S. dollar strengthened, sending the Canadian dollar and Mexican peso to multi-year lows, while China’s offshore yuan fell to a record low. The euro also plunged to its weakest level since 2022, and Bitcoin dropped below $100,000 as investors adjusted to the impact of new trade barriers.
Canada and Mexico, the top two U.S. trading partners, immediately vowed retaliatory measures, while China announced plans to challenge the tariffs at the World Trade Organization (WTO).
The U.S. dollar advanced against major currencies:
Mexican peso fell to its lowest since 2022, trading at 21.40 per dollar.
Canadian dollar dropped to C$1.4755 per U.S. dollar, its weakest level since 2003.
Euro fell 2.3% to $1.0125, before recovering slightly.
Bitcoin dropped 4.4% to $97,622, slipping below $100,000 for the first time in weeks.
“The surprise for markets is that Canada and Mexico retaliated immediately, and that China and the EU may follow," said Tony Sycamore, market analyst at IG.
As Trump had promised, the U.S. imposed:
25% tariffs on imports from Canada and Mexico
10% tariffs on Chinese goods
Trump justified the measures as necessary to combat illegal immigration and the drug trade. However, analysts warn that immediate retaliation from Canada and Mexico, combined with China’s WTO challenge, could further destabilize global trade.
"Trump's early strike, just two weeks into his four-year term, is likely to hit investor confidence," said Mansoor Mohi-uddin, chief economist at the Bank of Singapore.
With markets already bracing for potential tariffs on Europe, analysts warn that sustained trade disputes could lead to stagflation—weak growth combined with rising inflation.
What’s Next?
As global markets adjust to the new tariffs, investors are also scaling back expectations of Federal Reserve interest rate cuts, with traders now pricing in just 41 basis points of easing for 2025.
With retaliatory measures already in place and uncertainty surrounding future U.S. trade policy, financial markets are likely to see continued volatility in the days ahead.
Only four commodity vessels crossed the Strait of Hormuz on Sunday, following 13 transits a day earlier, as disruptions continue to restrict traffi...
Kazakhstan has elected its first unicameral Kurultai, bringing into force a sweeping political overhaul launched less than a year ago. The vote mar...
Syrian and Israeli officials held U.S.-brokered talks in Jordan on Sunday to ease tensions after an Israeli strike on a Syrian airbase near Tü...
Iran on Saturday denounced U.S. plans to announce new sanctions that could put further strain on the Islamic Republic's economy and have an impact on its most important trading partners including China.
Ukraine’s President Volodymyr Zelenskyy said on Monday that Kyiv wants peace but will not surrender to Russia, as foreign leaders joined Independence Day events marking 35 years since Ukraine’s independence.
A newly created pro-government political party has secured a commanding victory in Kazakhstan's snap parliamentary election, according to exit polls, strengthening President Kassym-Jomart Tokayev's influence at a pivotal moment in the country's political transition.
Only four commodity vessels crossed the Strait of Hormuz on Sunday, following 13 transits a day earlier, as disruptions continue to restrict traffic through the key energy chokepoint.
Ukrainian President Volodymyr Zelenskyy has rejected calls for a wartime election, arguing that holding a vote while Russia's full-scale invasion continues would divide the country and undermine national unity.
Kazakhstan has received a fresh vote of confidence in its economy after S&P Global Ratings upgraded the country’s credit rating, citing stronger public finances, solid reserves and steady economic growth.
AnewZ Business Europe, a new weekday programme, takes viewers inside companies driving growth and innovation across the continent, with Brickken CEO Edwin Mata joining the programme for its first episode with host Chief Global Editor Guy Shone. The show airs every Friday.
Once associated mainly with Muslim-majority countries, Islamic finance has become a global industry. Its assets reached around $5.98 trillion in 2024, according to ICD-LSEG, as more countries explore Shariah-compliant finance.
Fuel restrictions have returned to parts of Moscow and the surrounding region, adding another strain to Russia’s economy as refinery outages and rising imports weigh on the rouble.
Azerbaijan exported goods worth $17.372 million to Armenia between January and July 2026, according to data from the State Customs Committee, as commercial ties between the two South Caucasus neighbours showed signs of expansion.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment