Trump's "Reciprocal Tariffs 2.0" war begins, European stocks open lower, the US dollar and gold strengthen, Bitcoin hits a new high

Trump escalates trade threats, hinting at higher tariffs on most trading partners, triggering a sharp reaction in global markets. Stock index futures fell, the dollar strengthened, and investor concerns about the uncertainty of tariff policies resurfaced.

On Friday, the Euro Stoxx 50 index opened down 0.4%, and the Canadian dollar weakened. The dollar index rose 0.2%, while the yen fell, becoming the worst-performing currency among G10 currencies. Bitcoin continued its record rally, breaking through $118,000.

According to CCTV News, on July 10 local time, U.S. President Trump announced that starting August 1, a 35% tariff would be imposed on goods imported from Canada. The report stated that Trump also indicated plans to impose a uniform tariff of 15% or 20% on most trading partners.

• The Euro Stoxx 50 index opened down 0.4%, the German DAX index fell 0.5%, the UK FTSE 100 index opened flat, and the French CAC 40 index fell 0.3%.

• The Nikkei 225 index closed down 0.2%, at 39,569.68 points. The Tokyo Stock Exchange index closed up 0.4%, at 2,823.24 points. The South Korean Seoul Composite Index closed down 0.2%, at 3,175.77 points.

• The Vietnam VN index rose nearly 2%, reporting that Vietnam was surprised by Trump's 20% tariff and sought lower tariffs.

• The yield on the 10-year U.S. Treasury rose 1 basis point to 4.36%.

• The yield on the 10-year Japanese government bond remained largely unchanged at 1.495%.

• The spot dollar index rose 0.2%. The euro fell 0.2% against the dollar to $1.1681.

• The yen fell 0.5% against the dollar to 146.94.

• Gold stabilized after two consecutive days of gains, currently trading above $3,335 per ounce.

• Spot silver rose over 1% during the day, currently at $37.38 per ounce.

• Bitcoin rose nearly $118,000, continuing to set historical highs, with an intraday increase of over 3.5%.

Tariff Threats Expand, European Stocks Open Lower

Trump's decision to impose a 35% tariff on Canada represents a significant blow to Prime Minister Mark Carney's efforts to avoid punitive tariffs. This rate will take effect on August 1, higher than the current 25% tariff on Canadian imports not covered by the USMCA. Khoon Goh, head of Asian research at ANZ Bank, stated:

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

European stocks opened lower on Friday, following the index's fourth consecutive day of gains on Thursday. Investors are awaiting the Trump administration's upcoming announcement on EU tariff measures. Meanwhile, 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. This data was far below the 0.1% growth expected by economists surveyed by Reuters David Chao, global market strategist at Invesco, stated that investors are experiencing "tariff fatigue":

"Policy information overload, 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 are leading declines 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 the exchange rate against the US dollar dipping to 147.18 at one point. Fiona Lim, senior strategist at Malayan Banking Berhad Singapore, pointed out:

"Given the significant decline of the dollar in the first half of the year, we may see dollar short covering in intermittent tariff announcements."

Jeff Ng, head of Asian macro strategy at Sumitomo Mitsui Banking Corporation, stated:

"Recent unfavorable factors are facing some emerging market Asian currencies that rely on US exports."

The threat of tariffs is putting pressure on the market, with investors concerned that Asian export-oriented economies will face new trade obstacles. The market will closely monitor the US inflation data to be released next Tuesday, as well as the potential impact of tariff policies on the Federal Reserve's monetary policy path.

Gold Maintains Two-Day Uptrend, Bitcoin Hits New High

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

Gold has risen more than a quarter this year, having previously set a historical record of over $3,500 per ounce in April. Escalating geopolitical tensions and central bank purchases have also supported gold prices.

In contrast to traditional safe-haven assets, Bitcoin continues its strong upward trend, with prices breaking through $118,000 to reach a new all-time high.