The global markets experienced losses during Friday’s trading session because President Donald Trump introduced new trade restrictions which caused investors to become cautious. The U.S. President announced plans to impose a 35% tariff on Canadian imports starting next month while suggesting potential 15% to 20% duties against multiple trading partners. The Canadian dollar dropped 0.3% against the U.S. dollar while Wall Street’s major indexes declined with the Dow dropping 0.56% and the S&P 500 falling 0.33% and the Nasdaq decreasing 0.16%. The Nasdaq index continued its fourth consecutive week of positive movement. The fresh uncertainty about the market caused investors to lose confidence even though Nvidia achieved a $4 trillion valuation on Thursday. The STOXX 600 index declined by 1% while Japan’s Nikkei stock market index dropped 0.19%. The VIX index maintained its position as one of the lowest since February despite the market volatility. The recent optimism in technology stocks faces potential cooling according to analysts who predict the EU will react to the new market developments. The U.S. President extended tariff talks until August 1 while simultaneously targeting additional sectors and nations including Japan and South Korea. The 35% Canadian tariff does not affect many imports because they fall under existing trade agreements. The unpredictable nature of nightly tariff announcements has begun to create market unease.
