Bitcoin exceeded $118,000. Trump announced new tariffs on Canada

At the end of Thursday, the Dow Jones Index (US30) rose by 0.43%. The S&P 500 Index (US500) rose by 0.27%. The Nasdaq (US100) tech Index closed up 0.09%. On Thursday, the US stocks closed higher as investors ignored President Trump’s latest threats to impose tariffs and focused on strong corporate results and record profits. Despite Trump announcing a 50% tariff on imports from Brazil and confirming similar tariffs on copper and other goods, markets remained optimistic. Weekly jobless claims fell to 227,000, indicating a stable but cooling labor market.

Bitcoin surpassed the $118,000 mark, setting a new all-time high, driven by high institutional demand and supportive policies from the Trump administration. Since the beginning of the year, the cryptocurrency has risen in price by almost 22%. In March, President Trump signed an executive order establishing a strategic cryptocurrency reserve and appointed several prominent figures in the cryptocurrency industry. In this regard, Trump Media & Technology Group has applied with the US Securities and Exchange Commission to launch a cryptocurrency ETF that will invest in a basket of digital assets, further boosting confidence in institutional adoption. Investors are now closely watching the upcoming “crypto week,” which begins on July 14, when lawmakers are expected to consider several key bills related to digital asset regulation.

The Mexican peso (USD/MXN) weakened to 18.65 per US dollar, down from its August 2024 high, as new US threats to impose tariffs threatened key Mexican exports and strengthened the dollar. President Trump’s confirmation of a 50% tariff on copper — a sector in which Mexico is one of the world’s leading suppliers — along with veiled warnings of similar tariffs on pharmaceuticals and semiconductors, has jeopardized the export revenues of the country’s mining and manufacturing industries.

The Canadian dollar weakened to 1.37 per US dollar on Friday, hitting a two-week low after US President Donald Trump announced the introduction of steep 35% tariffs on Canadian imports, which will take effect on August 1. Trump cited Canada’s retaliatory tariffs and unwillingness to cooperate with Washington as justification, increasing pressure on Ottawa to reach a trade agreement before the deadline. The latest measures complement existing 50% tariffs on Canadian steel and aluminum — Canada is the largest supplier of both metals to the US. Economic data further affected sentiment: Canada’s trade deficit widened in June, and private sector activity declined for the seventh consecutive month, indicating weak growth momentum and clouding the Bank of Canada’s monetary policy outlook.

European stock markets traded without a clear trend on Thursday. The German DAX (DE40) fell by 0.38%, the French CAC 40 (FR40) closed up 0.30%, the Spanish IBEX35 (ES35) fell 0.79%, and the British FTSE 100 (UK100) closed up 1.23% yesterday. The FTSE 100 index reached a new record high, rising thanks to strong growth in mining company shares. AstraZeneca and GlaxoSmithKline shares rose more than 2% each, benefiting from investor relief as the healthcare sector was not directly affected by the latest tariff announcements.

According to the EU Trade Commissioner, significant progress has been made in negotiations with the United States on a framework agreement, and a deal could be announced in the coming days. Negotiators are discussing measures to protect the EU automotive industry, including tariff reductions and the introduction of import quotas. He further heightened uncertainty by sending seven additional letters to trading partners, following 14 letters sent earlier this week, all of which indicate that additional tariffs may be imposed shortly.

WTI oil prices fell 2% to below $67 per barrel on Thursday as traders digested news that OPEC+ may suspend its planned production increase starting in October. Although discussions are still in the early stages, this move reflects concerns about a possible oversupply in the market once the peak summer demand period has passed.

Asian markets were mostly higher. Japan’s Nikkei 225 (JP225) fell 0.44%, China’s FTSE China A50 (CHA50) gained 0.61%, Hong Kong’s Hang Seng (HK50) rose 0.57%, and Australia’s ASX 200 (AU200) showed a positive result of 0.59% yesterday.