President Donald Trump announced a 25% import tax on all goods entering the United States from Canada and Mexico, citing "because of fentanyl" as the reason behind this decisive action. This new tariff is scheduled to take effect on Saturday, sparking immediate concern among trade partners. Alongside this, President Trump renewed threats of tariffs against China, indicating further potential economic tension.
In a related announcement, the United States is evaluating specific measures concerning crude oil market restrictions. These developments have already begun to make waves across global markets. On Thursday, gold prices soared to nearly $2,800 per ounce troy, driven by a weakened US dollar and increased safe-haven inflows. This surge in gold reflects investors' cautious approach amidst the changing economic landscape.
Meanwhile, the European Central Bank (ECB) cut interest rates by another 25 basis points and appears poised to maintain its current rate cut cycle. This monetary policy adjustment aims to stimulate the Eurozone's economy amidst global uncertainties.
In the cryptocurrency sector, Ethereum experienced a 3% increase on Thursday. The digital currency is on the brink of a potential rally to $4,300 if it can overcome resistance posed by a falling wedge pattern. This upward trend follows growing support within the Ethereum community for researcher Danny Ryan to assume the role of executive director at the Ethereum Foundation.
President Trump's assertion that China will also face tariffs has added to the complex international trade environment. This has left investors and market analysts speculating about the long-term impacts on global trade dynamics.
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