U.S. Dollar Starts 2026 Weak as Yen, Euro and Sterling Hold Firm Amid Rate Cut Expectations 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
U.S. Stocks Slip as Gold Rebounds Ahead of Year-End, Markets Eye 2026 Outlook 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment 
Federal Reserve Begins Treasury Bill Purchases to Stabilize Reserves and Money Markets 
Japanese Business Leaders Urge Government Action as Weak Yen Strains Economy 
South Korean Won Slides Despite Government Efforts to Stabilize Currency Markets 
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry 
Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
Gold Prices Rebound in Europe as Geopolitical Tensions and Fed Outlook Support Bullion 
South Korea Factory Output Misses Forecasts in November Amid Ongoing Economic Uncertainty 
BTC Dips on Trade Tension Ease, But 450 BTC/Day Whale Says “Buy More” – Eyes $107K Glory 
Tensions between the United States and Canada have risen sharply as Canada's new "strategic partnership" with China has triggered a rapid upsurge. By lowering tariffs on up to 49,000 Chinese electric cars from 100% to 6% in exchange for better access for Canadian agricultural products like canola, Ottawa has created a schism with Washington. President Trump warned on Truth Social in response that he could levy 100% taxes on all Canadian goods should Canada develop into a "Drop Off Port" for Chinese products entering the American market.
Insisting Canada has "no intentions" and "no plans" to negotiate a complete free trade deal with China and reiterating Canada's support of the USMCA structure, Prime Minister Mark Carney has tried to restrain the fallout. Still, US authorities openly criticize: Treasury Secretary Scott Bessent saw the decision as a retreat from the previously harmonized US–Canada hard line on Chinese imports. For its part, China insists the agreement is limited and sectoral and not directed at the United States.
At a delicate time—with a USMCA review set for later in 2026—the disagreement ends. Though almost 80% of Canadian products already enter the United States duty-free, Trump's tariff threats and the EV deal increase the risk of new trade restrictions on key Canadian exports, including scrap metal, aluminum, and autos. Already evident in the increased USD/CAD volatility is the volatility. Though Carney has depicted Trump's cautions as a hard-nosed negotiating strategy ahead of USMCA discussions, the show emphasizes how flashpoints in North American trade relations are Chinese EVs and North American industrial policy.
