Trump 35% tariff on Canada
- Trump says will send tariff letters informing EU, Canada of the rates by Friday
- Trump letter 35% tariff on Canada. Trump has hit Canada very nard with a 35% tariff rate.
Other:
- Tesla has not applied for required robotaxi permits in California, despite Musk’s comment
- Saudi August crude supply to China the highest since 2023
- USD/JPY is back above 147.00
- South Korea trade official: US has demanded South Korea to join efforts to curb China
- ECB Board member Piero Cipollone speaking Friday, not on monetary policy
- Trump plans to sell weapons to several NATO allies, to be then passed on to Ukraine
- USD surge after Trump’s 35% tariff hit on Canada is retracing
- PBOC sets USD/ CNY reference rate for today at 7.1475 (vs. estimate at 7.1771)
- Re Canada tariffs – US official says Trump is set to keep tariff exemption for USMCA goods
- PBOC is expected to set the USD/CNY reference rate at 7.1771 – Reuters estimate
- Fed’s Goolsbee says mandate is infl, jobs. Its not cutting rates to make govt debt cheaper
- Next week’s US CPI risks being a shock, core expected at its highest since January
- HSBC says the ECB could shy away from rate cuts even if the euro keeps strengthening
- New Zealand June manufacturing PMI 48.8 (up from prior 47.5)
- European Commission preparing floating oil price cap on Russia, starting at $45
- Bitcoin surges above US$116,000
- Hong Kong’s central bank continues FX intervention to support the Hong Kong dollar
- Tesla has applied to test and operate its Robotaxis in Arizona
- ICYMI – China set to ramp up and broaden its fiscal support in the second half of the year
- ICYMI – Japan’s GPIF raised its holdings of US Treasuries to the highest level in a decade
- Trade ideas thread – Friday, 11 July, insightful charts, technical analysis, ideas
- Hassett says next Fed Chair should review the central bank’s overall size and structure
Futures slipped after U.S. President Donald Trump warned Canada of a new 35% tariff on imports starting August 1, a move separate from existing sector-specific levies. The threat was outlined in a letter to Canadian Prime Minister Carney, with Trump adding that the tariffs could be revised depending on U.S.-Canada cooperation—particularly on efforts to curb fentanyl flows. A U.S. official later clarified that USMCA products would be exempt.
Trump also signalled plans to double the universal baseline tariff to 20% and said a tariff letter for the European Union would follow by Friday.
Markets responded swiftly:
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The U.S. dollar gained broadly, with EUR, AUD, GBP, NZD, CHF, and JPY all weakening, and the Canadian dollar particularly hard hit.There have been retracements for all but the yen.
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USD/JPY rose above 147.00 and held most of its gains.
Other notable moves on the session:
- Bitcoin surged to a record high above $116,750.
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Iron ore extended gains for a third straight week, its best stretch since January, on hopes for more property-sector stimulus in China.
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The Hong Kong Monetary Authority intervened again, buying HKD13.8 billion to support the currency, marking its fourth action in two weeks as the HKD remains pinned to the weak end of its trading band.
In geopolitics, Trump is reportedly planning a major arms sale to NATO allies, with the expectation that the weapons will then be supplied to Ukraine.
This article was written by Eamonn Sheridan at www.forexlive.com.