Financial markets braced for heightened volatility as US President Donald Trump unveiled plans to impose 25% tariffs on the European Union, with previously announced duties on Mexico and Canada set to take effect on April 2. However, inconsistent messaging from the administration has left investors grappling with uncertainty, fueling swings across currency and equity markets. The dollar advanced, while the Canadian dollar stemmed losses following Wednesday’s turbulence.
Markets remain on edge as analysts assess whether Trump’s latest tariff measures are a negotiating tactic or a prelude to more aggressive trade restrictions. Research suggests the proposed levies on Chinese imports could have a deeper impact on the US economy than official data suggests. Treasury yields slipped, reversing earlier gains that had driven the US 10-year yield to its lowest level since mid-December. Meanwhile, Australian bond yields declined early Thursday.
Bitcoin Extends Decline, Oil Falls, Gold Steady
Bitcoin tumbled to around $84,000, marking a more than 20% decline from last month’s peak as ETF outflows added to selling pressure. Oil prices retreated, while gold remained little changed amid cautious sentiment. In currency markets, the yen hovered around 149 per dollar after stabilizing on Wednesday. Japan’s top currency official signaled no immediate concerns over growing speculation of a Bank of Japan rate hike, which had earlier propelled the yen to a four-month high.
Traders are now looking ahead to key US data releases later Thursday, including GDP figures and initial jobless claims, which could provide fresh clues on the Federal Reserve’s policy trajectory.