Silver reached a 13-year-high. The US plans to impose a 35% tariff on Canadian imports

At the end of Friday, the Dow Jones Index (US30) fell by 0.63% (-0.96% for the week). The S&P 500 (US500) Index fell by 0.33% (+0.01% for the week). The Nasdaq (US100) Technology Index closed down 0.21% (+0.12% for the week). The US stocks closed lower on Friday after President Trump announced 35% tariffs on Canadian imports and warned of broader tariff increases around the world. Trump’s letter to Canada raised concerns and warned of further action in the event of retaliatory measures, while also hinting that similar measures against the EU were expected soon. Most sectors were down, with healthcare and financial companies suffering the biggest losses, while energy and consumer goods rose.

The Canadian dollar weakened to 1.37 per US dollar after President Trump announced at the end of the week that he would impose 35% tariffs on all non-US Canadian goods, effective August 1, reigniting concerns about Canada’s access to exports and heightening uncertainty over trade policy. Trump increased pressure on Canada to conclude a new agreement before the deadline, adding to existing 50% tariffs on Canadian steel and aluminum, where Canada remains America’s main supplier. However, Canada’s domestic economy offered a counterargument: The June employment report delivered a significant surprise, with 83,100 jobs created and the unemployment rate falling to 6.9%, tempering market expectations for a Bank of Canada rate cut at its July 30 meeting and providing support for the CAD.

The Mexican peso weakened to 18.7 per dollar, retreating from its August 2024 highs. The Bank of Mexico’s June minutes showed that despite a 325 bps rate cut since the beginning of 2024, policymakers are now leaning toward modest quarter-point cuts as core inflation remains high at 4.32%, well above the 3% target and undermining expectations for more accommodative monetary policy.

European stock markets were mostly down on Friday. The German DAX (DE40) fell by 0.82% (+1.72% for the week), the French CAC 40 (FR40) closed down 0.92% (+1.62% for the week), the Spanish IBEX35 (ES35) Index fell by 0.94% (+0.33% for the week), and the British FTSE 100 (UK100) closed down 0.38% (+1.34% for the week). European stocks closed lower on Friday amid expectations of a decline in global trade flows. The EU Commission is expected to receive an official letter from US President Trump with tariffs on the bloc’s products, which will deprive European corporate giants of demand from key foreign customers. This came after Trump announced the introduction of 35% tariffs on Canadian imports from August 1 and announced plans to impose general tariffs of 15% to 20% on most other trading partners.

WTI oil prices rose 2.8% to $68.40 per barrel on Friday, recovering from a 2.5% drop in the previous session. Although the IEA expects a potential surplus at the end of this year, high demand for oil during the summer and high refinery utilization rates are supporting current prices. Russia’s promise to compensate for overproduction and expectations of record Saudi oil deliveries to China in August have reinforced short-term bullish sentiment. However, the IEA’s upward revision of its supply growth projections and downward revision of its demand expected point to a softer balance at the end of the year.

On Friday, silver prices (XAG/USD) rose above $38 per ounce, reaching their highest level in 13 years, as heightened global trade tensions fueled demand for safe-haven assets. The rally came after US President Donald Trump announced 35% tariffs on Canadian imports from August 1 and plans to impose tariffs ranging from 15% to 20% on most other trading partners.

Asian markets traded without a single trend last week. Japan’s Nikkei 225 (JP225) fell by 0.40%, China’s FTSE China A50 (CHA50) rose by 0.88%, Hong Kong’s Hang Seng (HK50) added 1.30%, and Australia’s ASX 200 (AU200) showed a negative result of 0.27%. Goldman Sachs upgraded Hong Kong stocks to market weight, citing stronger earnings growth amid improving capital markets and a revival in real estate activity. In addition, hopes rose for Beijing’s response to combat deflationary risks.

On Monday, the offshore yuan traded around 7.17 per dollar, supported by better-than-expected trade data. China’s trade surplus in June 2025 increased to $114.77 billion, exceeding expectations, as exports rose 5.8% year-on-year, driven by advance shipments ahead of the August tariff deadlines. Imports also rose 1.1%, which was below expectations but marked the first annual increase this year, indicating a moderate recovery in domestic demand.