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.
Rwanda has officially withdrawn from the Economic Community of Central African States (ECCAS), citing political bias and obstruction by the Democratic Republic of Congo (DRC).
Azerbaijan and the Czech Republic held regular political consultations in Prague, the Azerbaijani Foreign Ministry announced.
Russia carried out a large-scale air attack on the eastern Ukrainian city of Kharkiv overnight and into Saturday evening, killing at least four people and injuring more than 60 others, including a baby, according to local officials.
Kazakhstan is on the verge of awarding a major contract for its first-ever nuclear power plant, with bidders from China, Russia, France, and South Korea still in the running.
The UK government has pushed back its plans to regulate artificial intelligence by at least a year, opting instead to prepare a more wide-ranging bill covering both safety and copyright issues.
Rwanda has officially withdrawn from the Economic Community of Central African States (ECCAS), citing political bias and obstruction by the Democratic Republic of Congo (DRC).
Azerbaijan and the Czech Republic held regular political consultations in Prague, the Azerbaijani Foreign Ministry announced.
Kazakhstan is on the verge of awarding a major contract for its first-ever nuclear power plant, with bidders from China, Russia, France, and South Korea still in the running.
The UK government has pushed back its plans to regulate artificial intelligence by at least a year, opting instead to prepare a more wide-ranging bill covering both safety and copyright issues.
A 30-year-old woman was shot by police in Munich on Saturday evening after stabbing two people at Theresienwiese, a central park best known for hosting Oktoberfest.
Ukraine’s Security Service (SBU) has confirmed it carried out a third targeted attack against the Crimean Bridge, also known as the Kerch Bridge, early Tuesday morning, marking a new escalation in the ongoing conflict with Russia.
A strong 6.3 magnitude earthquake shook Japan’s Hokkaido prefecture early Monday, causing no reported injuries or damage, and no tsunami warning was issued, officials confirmed.
U.S. President Donald Trump and Chinese President Xi Jinping are expected to speak this week to discuss recent trade tensions, White House press secretary Karoline Leavitt said.
Peace talks between Russia and Ukraine ended abruptly in Istanbul on Monday, lasting just over an hour amid mounting tensions following a major Ukrainian drone strike on Russian strategic bombers and renewed pressure from the U.S. for a breakthrough.
Eid al-Adha, known as the "Festival of Sacrifice," stands as one of Islam's most significant celebrations, commemorating Prophet Ibrahim's willingness to sacrifice his son in obedience to Allah's command.
Global food commodity prices experienced a notable decline in May, driven by significant drops in the cost of grains, sugar, and vegetable oils, the United Nations' Food and Agriculture Organization (FAO) reported on Friday.
Germany’s new government has launched a major program aimed at boosting investment and helping Europe’s largest economy recover after two years of decline.
The European Central Bank has reduced its three key interest rates by 25 basis points, aligning with expectations and reflecting progress toward its inflation target.
Centrica, owner of British Gas, has agreed to a £20 billion deal with Norway’s Equinor to supply nearly 10% of the UK’s gas needs annually for the next decade, supporting energy security while paving the way for future hydrogen integration.
Tesla’s shares declined by about 14.2% on Thursday, reducing the company’s market value by roughly $152 billion, as Elon Musk and Donald Trump publicly exchanged criticisms on social media.
Rwanda has officially withdrawn from the Economic Community of Central African States (ECCAS), citing political bias and obstruction by the Democratic Republic of Congo (DRC).
Azerbaijan and the Czech Republic held regular political consultations in Prague, the Azerbaijani Foreign Ministry announced.
Kazakhstan is on the verge of awarding a major contract for its first-ever nuclear power plant, with bidders from China, Russia, France, and South Korea still in the running.
The UK government has pushed back its plans to regulate artificial intelligence by at least a year, opting instead to prepare a more wide-ranging bill covering both safety and copyright issues.
A 30-year-old woman was shot by police in Munich on Saturday evening after stabbing two people at Theresienwiese, a central park best known for hosting Oktoberfest.
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