US President Donald Trump has once again sparked significant movements in the financial markets during trading on Friday (July 11, 2025). He announced a 35% import tariff on goods from Canada, which will take effect on August 1. This announcement signals that the US and Canada have failed to reach a trade agreement by the July 9 deadline.
Canada is one of the largest trade partners of the United States, so the proposed increase in import tariffs could have a profound impact on the economies of both nations. Moreover, Trump also raised copper tariffs from all countries by 50%, with Canada being the second largest exporter of copper to the US.
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In response to the increase in copper tariffs, Canadian Industry Minister Melanie Joly expressed her determination to counter these measures.
The sentiment stemming from Trump’s policies is likely to continue influencing market movements during European trading hours.
Gold
Gold prices (XAUUSD) rose nearly $18, or 180 pips, reaching $3,341.61 per troy ounce in today’s trading, continuing the upward trend from the previous two trading days. The potential for a trade war between the US and Canada has increased the demand for Gold as a safe haven investment.
Additionally, Brazil, also facing high import tariffs, has indicated it will retaliate. This sentiment will likely continue to influence Gold prices during the European trading session.
Oil
Oil prices (CLS10) dropped $1.42 to $66.85 during Thursday’s trading as signs of declining demand from the US emerged after data indicated a significant increase in stock levels.
Furthermore, concerns about a global economic slowdown due to Trump’s tariff policies arise, especially since only three countries reached a trade agreement by July 9.
This sentiment will likely weigh on Oil prices during the European trading session.
EURUSD
The EURUSD pair exhibited volatility before closing at 1.16977 on Thursday. Compared to Wednesday’s close, it dropped 221 points (22.1 pips). The Euro fell after the US dollar gained positive sentiment following the release of lower-than-forecast unemployment claims data.
Now, with the risk of a renewed trade war increasing, especially as the European Union has yet to finalize a trade agreement with the US, pressure mounts on the EURUSD.
GBPUSD
The GBPUSD pair showed volatility before closing slightly lower at 1.35743. Similar to EURUSD, this currency pair faced downward pressure after a resurgence of the US dollar in response to the lower-than-expected unemployment claims data.
In the European trading session, data releases from the UK are likely to impact GBPUSD movements. Economic growth data (gross domestic product/GDP) is predicted to grow by 0.1% month-on-month in May, compared to a previous -0.3% MoM. Additionally, May’s industrial production is expected to rise by 0.2% MoM, after experiencing a -0.6% MoM decrease in the prior month.
Better-than-forecast data releases could generate positive sentiment for GBPUSD.
USDJPY
The USDJPY pair dipped slightly on Thursday to 146.168 but rebounded today, rising 1.014 points (101.4 pips) to 147.182. The escalating risks of a trade conflict have made this pair volatile, as both the dollar and the yen are considered safe haven assets.
However, this time it appears that the US dollar is gaining an advantage, as Trump plans to increase tariffs on imports from Japan, and trade talks between the US and Japan have yet to reach a resolution.
This sentiment is expected to continue influencing the USDJPY’s movements during the European trading session.
Nasdaq
The Nasdaq index plummeted by 178 points to 22,831 in today’s trading, following Trump’s announcement regarding increased tariffs on Canada.
Given the rising risks of a trade war between the two countries and the Nasdaq’s proximity to its all-time highs, there is potential for profit-taking actions to occur during the European trading session.
