Trade Tensions Escalate Amid New Tariff Announcements

Global stock markets faced modest declines as President Donald Trump's announcement of 35% tariffs on Canadian imports heightened trade tension fears. The Canadian dollar weakened against the U.S. dollar while market participants braced for possible EU tariffs, injecting a fresh dose of uncertainty into the market landscape.

Despite a milder reaction compared to previous tariff announcements, the market's resilience might be tested if tariff negotiations stall. Meanwhile, stocks like Nvidia reached new heights, benefiting from strategic U.S. policy shifts, while drone manufacturers saw considerable gains following a production boost directive.

The trade environment remains volatile with adjustments to tariffs, impacting currencies, bitcoins, copper, and gold prices. Investors are keenly awaiting upcoming economic data, particularly concerning inflation, which could influence Federal Reserve decisions. The financial fallout from ongoing tariff strategies remains a point of concern for global investors.

(With inputs from agencies.)