The Impact of the US Trump Tariff on Different Financial Assets
Donald Trump has shaken the entire market by announcing Trade Tariffs at the start of 2025. Since then, assets such as gold, stocks, and currencies have reacted to it.
Daily, an update or tariff news on the Trump Tariff gives birth to volatility in the global market. Thus, in this blog, we have decided to provide you with the impact of the US Trump Tariff on trading instruments.
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Trumno announced a 25% levy on all imports from Canada and Mexico, and a 10% tariff on imports from China.
If the US and China decided to stop the ongoing trade war, it would have a positive impact on the global economy, trade conditions, and financial markets.
Recently, on 11th June 2025, the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. gave the green light to President Donald Trump’s tariffs.
Most stocks, including Apple, Nvidia, Boeing, Nike, Walmart, Tesla, Ford etc, saw a price fall due to an increase in the raw material export cost from China.
Trading in safe haven assets such as Gold, silver, or currencies such as Japanese Yen, Swiss Franc will help traders in diversifying the portfolio and risk management.
What was the Trump Tariff 2025 all about?
A tariff can be defined as a tax that companies have to pay for importing goods from other countries.
US President Donald Trump, with the aim of promoting domestic products, revised the tariff policies at the start of 2025. The news caught the attention of investors, impacting the price of different financial assets.
On April 2, 2025, Trump declared a 10% baseline tariff on all imported goods on the occasion of Liberation Day. He announced a 25% levy on all imports from Canada and Mexico, and a 10% tariff on imports from China.
This caused heightened concern, particularly for industries trying to understand how to stop Trump auto tariffs, which have been the subject of heavy debate.
Why the US Tariff Impacted the Market?
When a country increases the tariff charges, it directly affects the prices of goods and services. Like in this case, an increase in Trump China tariffs will increase the manufacturing cost of US companies.
So companies will either import the goods from other nations with fewer tariffs or use the domestic products of the USA. It directly impacts the supply and demand dynamics and gives a boost to US products.
As a result, the news gave rise to a trade war between the USA and China, impacting the price of diverse financial assets.
Impact of Trump Tariffs 2025
The US, being a global financial leader, dominates the entire market. One important announcement from the United States has the power to change the market.
Like, we are seeing in 2025, how Trump’s one tariff statement is in the news till now. Every day, there is an important update to it. Recently, on 11th June 2025, the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. gave the green light to President Donald Trump 2025 tariffs.
Understanding Trump auto tariffs and related impacts will provide you with an overview of the entire financial market. Also, you can make the buying and selling decisions accordingly. So, let us explore the financial market reaction to tariffs on diverse assets:
Trump Tariffs and Forex Markets
The most significant change the Trump Tariff has made is to the Forex market. And it is quite obvious. USD is the strongest and most traded currency, so all the major pair market conditions were impacted by the news. Here is how:
Trump tariffs' effect on USD
As soon as the news was released, the US Dollar got some strength and was bullish. However, it was short-lived; after that, the currency weakened, and the market gave mixed reactions.
Expectations
The US Tariff was ultimately to make US goods more competitive. So, from a long-term perspective, USD is expected to gain strength from the Trump Tariff announcement.
Chinese Yuan and US Tariffs
The second most affected currency by Trump’s announcement is the Chinese Yuan. And why not? The news gave birth to trade tensions between the two world powers. The CNY negatively reacted to the news, and a bearish trend was started.
Expectations
The major reasons for the Chinese currency’s strength are the country’s exports. And the Trump China tariffs increase will have a negative impact on its exports. So, a continuation of the bearish trend is expected for CNY.
EURO
The major reasons for the Chinese currency’s strength are the couEven the European region faced a tariff of 20% in Trump’s policies, negatively impacting the EURO. We might see bearish pressure on the Euro in the near term.ntry’s exports. And the Trump China tariffs increase will have a negative impact on its exports. So, a continuation of the bearish trend is expected for CNY.
Japanese Yen
Japan was not targeted in the Trump Tariff. So, investors gained confidence in Japanese Yen, thinking of it as a safe haven asset amid trade wars. This led to the start of a bullish trend in JPY, and it might continue in the future.
Impact on Commodities
Due to the US market correlation with the commodity market, the news even impacted commodities. Here is the tariff news market reaction:
Gold
Even the safe-haven asset reacted to Trump tariffs. Soon after the US Tariff announcement, the Gold price touched an all-time high, reaching the level of US$3,167.77. However, the trend only lasts up to a week. But gold is still reacting to the news or updates of US tariffs.
Silver
Silver is an alternative to Gold, and even followed the gold path after the news release. It has seen a bullish trend, and it is expected to continue.
Copper and Aluminum
China is a major exporter of these two metals. The Trump China tariffs disrupted the supply and demand dynamics, impacting their price negatively. Analysts have mixed expectations for the Trump tariffs in the near future.
Stock Market and Trump Tariffs
Most multinational companies and tech giants are situated in the USA. These companies export the raw material to manufacture their products.
And the Trump economic policy and tariff news have changed their working conditions, impacting their stock prices. Now let us see the trade war’s effect on equities and stocks:
- The price of Tech stocks such as Apple, Nvidia, Boeing, and many others saw a significant drop. This is due to an increase in the raw material export cost and trade war tensions between China and the USA.
- Consumer stocks such as Nike and Walmart also saw a drop.
Automotive stocks such as Tesla and Ford also saw a decrease in their value due to uncertainty around Trump auto tariffs.
Long-term Economic Impact of 2025 Tariffs
- The US Tariff is expected to raise the inflation rate. The increase in import costs is making the goods and services expensive.
- The Gross Domestic Product (GDP) rate might fall due to an increase in manufacturing costs.
- The stock market can experience a bearish trend due to supply and demand disruptions.
- It may lead to geopolitical tensions and trade war circumstances.
The financial market will experience significant volatility due to further tariff news releases and announcements.
Wrapping Up
The impact of the US Trump Tariff is significant on diverse financial instruments. The safe haven assets, such as gold, silver, or the Swiss franc, are observing a positive rally.
And the market of forex currencies and stocks is weakening. The trade war is giving birth to tensions amongst investors, and they are turning towards safe-haven assets.
However, news of US-China tariff truce or agreement can again change the market. Thus, continuously watching the market conditions is important — especially for businesses in Canada negotiating around Trump auto tariffs and investors tracking Trump China tariffs updates.