Overview

• President Donald Trump announced a 10% baseline tariff on all U.S. imports, with higher rates targeting the EU, Japan, and China.
• The U.S. dollar plummeted to six-month lows against major currencies, including the yen, euro, and Canadian dollar, as investors shifted to safer assets like bonds and gold.
• Canada and Mexico largely avoided new tariffs under the USMCA, while the Canadian dollar surged to a four-month high against the U.S. dollar.
• The Federal Reserve is now expected to implement multiple rate cuts in 2025 as concerns about a potential U.S. recession grow.
• The EU and China have pledged retaliatory measures, heightening fears of a broader trade war and further destabilizing global markets.