Trump Increases Import Tariffs from Canada, Gold Rises; Nasdaq Drops

The President of the United States, Donald Trump, has announced a 35% import tariff on goods from Canada, effective August 1st. This announcement comes after the U.S. and Canada failed to reach a trade agreement by the July 9th deadline.

Following this news, the price of gold surged to approximately $3,336 per troy ounce. In contrast, the Nasdaq Composite index plummeted by 178 points, settling at 22,831.

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Canada is one of the largest trading partners of the United States, so the implementation of these tariffs could significantly impact the economies of both nations. Furthermore, Trump has also increased copper tariffs from all countries by 50%, with Canada being the second-largest exporter of copper to the U.S.

In response to the hike in copper tariffs, Canadian Minister of Industry Melanie Joly firmly stated that Canada would push back. This heightens the risk of a trade war between the two nations, ultimately putting downward pressure on stock indices and boosting demand for gold as a safe haven.