Trump's "Percent Tariff 2.0" war started, US stocks rose before the market opened, European stocks fell, US dollar and gold strengthened, and Bitcoin rose to a new high

Source: Wall Street News

Trump escalated trade threats, hinting at imposing higher tariffs on most trading partners, triggering violent reactions in global markets. Stock index futures pulled back, the US dollar strengthened, and investors' concerns about the uncertainty of tariff policies resurfaced.

On Friday, the Euro Stoxx 50 Index opened 0.4% lower. Before the US stock market opened, most Chinese concept stocks rose. The Canadian dollar weakened, the US Dollar Index rose 0.2%, and the Japanese yen fell, becoming the worst-performing currency among G10 currencies. Bitcoin continued its record-breaking rally, breaking through $118,000.

According to CCTV News, on July 10 local time, US President Trump announced that he would impose a 35% tariff on goods imported from Canada starting from August 1. It is reported that Trump also said he plans to impose a uniform tariff of 15% or 20% on most trading partners.

Before the US stock market opened, most Chinese concept stocks rose. NIO rose about 1%, Li Auto rose about 2%, and JD.com rose about 1%.

The Euro Stoxx 50 Index opened 0.4% lower, Germany's DAX Index fell 0.5%, Britain's FTSE 100 Index opened flat, and France's CAC 40 Index fell 0.3%.

Japan's Nikkei 225 Index closed 0.2% lower at 39,569.68 points. Japan's TOPIX Index closed 0.4% higher at 2,823.24 points. South Korea's Seoul Composite Index closed 0.2% lower at 3,175.77 points.

Vietnam's VN Index rose nearly 2%. It is reported that Vietnam was surprised by Trump's 20% tariff and is seeking lower tariffs.

The 10-year US Treasury yield rose 1 basis point to 4.36%.

Japan's 10-year government bond yield remained little changed at 1.495%.

The US Dollar Spot Index rose 0.2%. The euro fell 0.2% against the US dollar to $1.1681.

The Japanese yen fell 0.5% against the US dollar to 146.94.

Gold stabilized after rising for two consecutive days and is currently trading above $3,335 per ounce.

Spot silver rose more than 1% intraday, currently trading at $37.38 per ounce.

Bitcoin rose to nearly $118,000, continuing to hit a new all-time high, with an intraday increase of more than 3.5%.

Tariff threat expands, European stocks open lower

Trump's decision to impose a 35% tariff on Canada is a major blow to the efforts of Canadian Prime Minister Mark Carney to avoid punitive tariffs. This tariff rate will take effect from August 1, which is higher than the current 25% tariff on Canadian imports not covered by the US-Mexico-Canada Trade Agreement. Khoon Goh, Head of Asia Research at ANZ, said:

"The latest news of higher tariffs on Canada and possibly other countries has led to a decline in risk appetite."

Before the US stock market opened, most Chinese concept stocks rose: NIO rose about 1%, Li Auto rose about 2%, and JD.com rose about 1%.

European stocks opened lower on Friday, after the index recorded a fourth consecutive day of gains on Thursday. Investors are waiting for the Trump administration's upcoming announcement of tariff measures against the European Union. At the same time, the latest data from the UK Office for National Statistics showed that the UK economy contracted by 0.1% in May, marking the second consecutive month of negative growth. The data was far lower than the 0.1% growth expected by economists surveyed by Reuters.

David Chao, Global Market Strategist at Invesco, said that investors are experiencing "tariff fatigue":

"There is an overload of policy information, and constant updates, delays and new announcements are creating a confusing environment."

Asian emerging market currencies under pressure

The Indian rupee, Malaysian ringgit and South Korean won led the decline against the US dollar, with the US Dollar Spot Index rising 0.2%.

The Japanese yen has become the worst-performing currency among G10 currencies, with its exchange rate against the US dollar once falling to 147.18. Fiona Lim, Senior Strategist at Malayan Banking Berhad in Singapore, pointed out:

"Given that the US dollar fell sharply in the first half of the year, we may see short covering of the US dollar amid intermittent tariff announcements."

Jeff Ng, Head of Asian Macro Strategy at Sumitomo Mitsui Banking Corporation, said:

"For some emerging Asian market currencies that rely on exports to the US, there are recent headwinds."

The tariff threats have weighed on the market, with investors worried that Asia's export-oriented economies will face new trade resistance. The market will pay close attention to the US inflation data to be released next Tuesday and the potential impact of tariff policies on the Federal Reserve's monetary policy path.

Gold maintains a two-day rally, Bitcoin hits a new high

Gold stabilized after rising for two consecutive days and is currently trading above $3,335 per ounce.

Gold has risen by more than a quarter so far this year and hit a record high of over $3,500 per ounce in April. Escalating geopolitical tensions and central bank purchases have also provided support for gold prices.

In contrast to traditional safe-haven assets, Bitcoin has continued its strong rally, with its price breaking through $118,000 to hit a new all-time high.

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