Oil Prices Surge as Trump’s Tariffs Spark Supply Concerns 
Wall Street on Edge as Trump’s Tariffs Spark Fears of Inflation and Market Volatility 
Mexico Strikes Back with Tariffs as Trade War Escalates with U.S. 
U.S. Manufacturing Expands Amid Tariff Uncertainty 
Global Currencies Stabilize as U.S. Tariff Uncertainty Persists 
Trump Pauses Tariffs on Mexico, Canada; China Tariffs Proceed as Planned 
Trump’s 25% tariffs on Canada and Mexico amp up the risk of a broader trade war 
Trump Pauses Tariffs on Canada Following Border Security Agreement 
Dollar Surges as Trade War Escalates, Chinese Yuan Hits Record Low 
Australian Retail Sales Dip in December After Black Friday Surge 
BIS Warns Fed and ECB: Rethink Interest Rates to Control Inflation 
EU Warns of Trade War as Trump Threatens New Tariffs 
Global Markets Plunge as Trump Imposes Sweeping Tariffs on Canada, Mexico, and China 
South Korea’s Retail Sales Decline Amid Political Unrest and Weak Consumer Spending 
Canada Introduces Tariff Relief for Businesses Amid U.S. Trade Dispute 
The U.S. dollar soared to a three-week high after President Donald Trump imposed new trade tariffs, fueling demand for the greenback as a safe-haven asset. At 04:30 ET (09:30 GMT), the Dollar Index rose 1% to 109.305, following Trump’s 25% tariffs on Canada and Mexico and a 10% duty on China, citing concerns over illegal immigration and drug trafficking.
China, Canada, and Mexico vowed retaliation, raising fears of a renewed global trade war. The offshore yuan hit a record low, the Mexican peso plunged to its weakest in nearly three years, and the Canadian dollar slumped to its lowest level since 2003. Investors anticipate further volatility as trade tensions escalate.
The euro weakened as EUR/USD dropped 1.1% to 1.0248, its lowest since November 2022. Trump hinted at imposing similar tariffs on the European Union, exacerbating concerns over trade imbalances. The U.S. ran a $200 billion trade deficit with the EU last year. Meanwhile, the ECB recently cut interest rates, aiming to boost economic growth amid easing inflation.
Sterling remained relatively stable, with GBP/USD slipping 0.1% to 1.2313. Trump suggested that U.K. tariffs were a possibility but indicated a resolution could be reached. The Bank of England’s upcoming policy meeting may result in interest rate cuts to support the sluggish economy.
In Asia, the offshore yuan (USD/CNH) edged 0.3% higher to 7.3400 after Trump’s tariffs dampened China’s export prospects. Beijing condemned the move and hinted at strong stimulus measures. The Japanese yen saw limited weakness, with USD/JPY trading at 155.22, benefiting from its safe-haven status.
Market uncertainty remains high, with investors closely watching inflation data and central bank decisions as global trade tensions escalate.
