Dollar soars and stock markets fall sharply after Trump’s tariff war begins
The US dollar is approaching parity with the euro and reaching a record high against the Canadian dollar and a three-year high against the Mexican peso. Exporting companies are feeling the pressure already
The tariffs on U.S. imports from Mexico, Canada and China decreed by Donald Trump this Saturday have caused an earthquake in the financial markets. Since trading opened in Asia, the dollar has soared against the main currencies and is approaching parity with the euro. The Canadian dollar meanwhile has fallen to a new historic low against the U.S. currency, while the Mexican peso has depreciated to its lowest level since the end of 2021. At the same time, futures on the S&P 500, the main U.S. stock index, and the Euro Stoxx 50, the European index, are trading lower and oil has become more expensive. Uncertainty and increased aversion to risk have led to declines of more than 20% in some cryptocurrencies. On Friday, before the end of the trading day, the effects of the protectionist measures were already being felt in the financial markets.
