The euro surged against the dollar following U.S. President Donald Trump’s announcement of new import tariffs.
On Thursday morning, the EUR/USD pair jumped 0.5%, reaching 1.0915 and approaching the five-month high of 1.0953. The European currency has nearly recovered the losses sustained after Trump’s re-election on November 5.
Trump announced a minimum 10% tariff on imports from all countries, along with additional duties for certain nations deemed to be violators. According to a chart presented by the president, the highest tariffs were imposed on China (54%, including the previously existing 20%), the European Union (20%), and Vietnam (46%).
Following this news, the U.S. dollar weakened against most major currencies, including the Japanese yen, British pound, and Swiss franc. Meanwhile, the yield on 10-year U.S. Treasury bonds fell to its lowest level since October 2024.
However, commodity-linked currencies such as the Australian and Canadian dollars declined due to falling prices of industrial metals and oil. The introduction of new tariffs has raised concerns about a global trade war and a potential economic slowdown, putting pressure on commodity prices.
Global markets reacted to Trump’s statements with significant sell-offs. In Asia, the Nikkei 225 index dropped 3%, China’s Hang Seng fell 1.5%, while Australia’s ASX 200 and South Korea’s Kospi both lost 1%.
Australian mining companies suffered substantial losses, with BHP shares falling 2.4% and Rio Tinto dropping 2.8%. Analysts warn that potential retaliatory tariffs from China and other nations could severely impact Australia’s export-driven economy.
U.S. stock futures also turned negative, with the Dow Jones losing 2.01%, the S&P 500 down 2.78%, and the Nasdaq plunging 3.3%. European markets are also expected to decline, as the German DAX futures fell 1.89%. The technology sector came under pressure, with Tesla shares down 4.5%, Apple declining 2.3%, and Nvidia dropping 2.4%.
Amid overall instability, investors turned to gold as a safe-haven asset. Gold futures on COMEX hit a record $3,195 per ounce, while the spot price rose to $3,167.
Gold continues to show strong growth, gaining 20% this year following a 30% surge in 2024. The main drivers remain the weakening dollar, aggressive central bank purchases, and the metal’s high investment appeal in times of global uncertainty.
