Friday Afternoon Coffee - Markets Update - 11 July 2025 - Markets Weaken as Trump Slaps Tariffs on Canadian Imports; Bitcoin Soars to Record

The Trade Academy Team
Jul 11, 2025
3 min read

Markets Update: U.S. stocks slipped Friday afternoon and the Canadian dollar fell after President Donald Trump unveiled sweeping new tariffs on Canadian imports, escalating trade tensions and raising fresh concerns about global economic stability. Meanwhile, Bitcoin surged to a record high and gold rallied as investors sought refuge in alternative assets.

Global Markets Roundup: 11 July 2025

Trump Targets Canada, Broader Tariffs Loom

Late Thursday, Trump announced a 35% tariff on all Canadian imports, set to take effect next month. The president also floated blanket tariffs of 15% to 20% on most other U.S. trading partners, with additional levies against the European Union expected soon—moves that are already drawing threats of retaliation from major allies.

While initial market reactions were muted compared to earlier trade shocks, investors remain wary of another escalation if no progress is made in trade negotiations. Trump’s latest move follows an earlier delay to his July 9 tariff deadline—extended to August 1 to allow for more talks—but also came with expanded duties, including a 50% tariff on copper and fresh penalties on imports from Japan, South Korea, and Brazil.

Stocks Edge Lower, Drone Makers Rally

The Dow Jones Industrial Average fell 281.88 points, or 0.63%, to 44,368.76, while the S&P 500 slipped 15.03 points, or 0.24%, to 6,265.43. The Nasdaq Composite managed a modest gain of 7.47 points, or 0.04%, to 20,638.13, buoyed by tech strength.

Chipmaker Nvidia (NVDA) climbed over 1% to a new all-time high, pushing its market value to $4.05 trillion.

Defense stocks surged after U.S. Defense Secretary Pete Hegseth ordered an increase in drone production. AeroVironment (AVAV) and Kratos Defense (KTOS) each jumped around 11%.

Globally, MSCI’s world stock index dipped 3.03 points, or 0.33%, to 923.19, while Europe’s STOXX 600 closed down 1.01%.

Currency Markets React to Trade Uncertainty

The Canadian dollar slipped 0.14% to C$1.37 per U.S. dollar, pressured by the new tariff threat. The U.S. dollar index DXY rose 0.26% to 97.84 as traders moved into the greenback amid global trade jitters. The euro edged down EURUSD 0.09% to $1.1689.

Bitcoin Hits New High; Gold Rallies

Bitcoin (BTCUSD) surged 3.58% to a fresh record of $117,652.50, as crypto investors bet on policy tailwinds expected next week that could attract institutional inflows.

Spot gold rose 1% to $3,355.89 per ounce, as market uncertainty pushed investors into safe-haven assets.

Bond Yields Climb Ahead of Inflation Data

U.S. Treasury yields rose, with the 10-year note climbing 7.3 basis points to 4.419%, amid investor focus on next week’s CPI report. Economists expect inflation to have picked up in June, though the Federal Reserve is likely to remain on hold while assessing tariff impacts.

Energy, Commodities Mixed

West Texas Intermediate (WTI) crude for August delivery rose $1.88 to $68.45 per barrel, while Brent crude added $1.66 to $70.30.

Copper slipped 0.4% to $9,664 per metric ton following the U.S. decision to slap a 50% tariff on Brazilian imports.

Arabica coffee extended its rally, topping $2.90 per tonne—the strongest since July 2.

Grains Slide on Weak Fundamentals

Grain markets remained under pressure:

Corn (ZC1!) fell 4¼ cents to $4.12¼ per bushel, nearing eight-month lows.
Soybeans (ZS1!) dropped 6½ cents to $10.07¼, hovering near a three-month low.
Wheat (ZW1!) slipped 9½ cents to $5.45, despite briefly touching a one-week high.

Outlook

With a broader trade war now in full swing and more tariffs on deck, markets face heightened uncertainty heading into next week. Investors will closely watch for updates on trade negotiations, as well as key earnings reports and inflation data that could shape the Federal Reserve’s next move.

Looking forward, refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team