Markets Reel Amid Fresh Tariff Blows as Dollar Gains Traction

11 July 2025

Kim Kyung-Hoon | Credit: REUTERS

Global markets experienced a violent jolt this morning following President Trump’s sweeping announcement of new tariffs, notably a 35 percent levy on Canadian imports starting August 1 and the prospect of broader tariffs of 15–20 percent on other trading partners, including the EU, Japan and South Korea, as well as a steep 50 percent tariff on copper. The tariffs extinguished an early rally in Asia, causing S&P 500 and Nasdaq futures to slide about 0.4 percent, and EURO STOXX 50 futures to lose around 0.6 percent.

In the currency markets, the U.S. dollar rose firmly, up 0.4 percent against the Canadian dollar and approximately 0.25–0.3 percent versus the euro, yen and Australian dollar reflecting safe‑haven flight amid tightening trade tensions. The move left the dollar on track for its strongest weekly performance since late February.

Shockwaves rippled through commodities as well. Copper markets responded sharply to the proposed tariff, surging more than 10 percent. Oil prices, meanwhile, posted modest gains Brent crude rose 0.2 percent to $68.77 a barrel, and West Texas Intermediate rose 0.3 percent to $66.76 . Gold also ticked up approximately 0.3 percent, though its upside remained capped by the stronger dollar.

Despite the tariff shock, U.S. equities remain buoyant. Wall Street closed Thursday at record highs, driven in large part by Nvidia’s unprecedented $4 trillion market valuation and upbeat earnings from Delta Airlines. Global investors continued to pour capital into technology-linked equity funds, with global equity inflows reaching $10.2 billion this week, supported by the AI rally and postponement of tariff enforcement until August.

Still, caution has begun to register. Futures reflected investor wariness S&P 500 and Nasdaq futures were down 0.4 percent . Market analysts warn that while equities have held steady so far, upcoming corporate earnings including reports from JPMorgan and other large U.S. banks next week and a key inflation print may reveal how tariffs are filtering into prices, profits, and consumer behaviour .

Looking ahead, bond markets showed little immediate reaction; the benchmark 10‑year U.S. Treasury yield held at roughly 4.35 percent . But markets admit that the full economic fallout from broad-based tariffs has yet to play out, with analysts warning headline effects may gain traction later in the year .

Meanwhile, cryptocurrency markets continued to shine amid the uncertainty. Bitcoin climbed to fresh highs near $118,000, fuelling rallies in U.S.-listed crypto stocks and signalling progress ahead of next week’s "Crypto Week" in Washington, where lawmakers will debate possible federal regulations.

To summarize, markets are being stretched across multiple fronts: escalating trade friction, inflation pressures, Fed policy uncertainty, and a geopolitical backdrop fraught with volatility. Yet the twin pillars of tech dominance and crypto momentum are offering counterbalance at least for now.