Trump Tariffs Trigger Global Selloff

Markets across the globe reacted sharply after former U.S. President Donald Trump announced new tariffs on Canada and hinted at 15–20% levies on goods from the EU, Japan, and South Korea. The Canadian dollar weakened sharply, while European futures turned negative. Risk appetite across global equities took a hit as investors priced in the potential for trade wars 2.0.

The announcement, which echoes Trump’s earlier protectionist stance during his presidency, is seen as an attempt to garner political support ahead of the U.S. elections. Market participants fear the imposition of retaliatory tariffs by affected countries, which could further fragment global supply chains already weakened post-COVID.

While the dollar and U.S. treasuries strengthened on the back of flight-to-safety demand, equities in Asia showed mixed performance. Economists warned that any sustained disruption in global trade flows could hurt corporate earnings in cyclical sectors, further elevating market volatility in the second half of 2025.