U.S. Tariffs Unsettle The Markets While The U.K.'s May GDP Unexpectedly Contracted

2025-07-11 08:15:00 ET

Overview

The US 35% tariff on Canada and President Trump's threat to have a 15%-20% universal tariff rather than 10% provides today's disruption. A tariff letter for the EU is awaited but seeing how the US treated Canada and Brazil (with whom the US has a trade surplus) warns of the risk to Europe. That said, the full details of the tariff threat on Canada, given the free-trade deal, have not been reported yet. The dollar is firmer against the G10 currencies. The backing up of US rates arguably helped push the yen to the bottom of the leaders' board with a 0.5%-0.6% loss. The Canadian dollar is at a new low for the month and is off about 0.35%. The UK economy unexpectedly contracted in May, the second consecutive month. Sterling is off around 0.25%. Most emerging market currencies are lower. The Chinese yuan is a notable exception after the PBOC set the dollar's fix at its lowest level since last November....

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