U.S. Dollar Strengthens as Trump Announces Broad Tariffs

The U.S. dollar climbed on July 11 in response to increased trade tensions after the President announced new tariffs: 35% on Canadian imports and possible levies of 15–20% on other major partners. Currency markets responded swiftly, with the Canadian dollar and euro weakening significantly. Investors sought safe-haven assets amid heightened policy uncertainty.

Currency markets have shifted, with the dollar index rising approximately 0.2%, heading for a weekly gain around 0.8%. Emerging market currencies felt the pressure, as the threat of escalation prompted a cautious global tone across financial markets. Export-heavy nations were especially vulnerable.

The broader implication is clear—tariff escalation has spilled into currency valuations, altering export competitiveness globally. Investors must now monitor trade headlines alongside traditional macro indicators like interest rates and growth trends.