The US Dollar continues to be under pressure, staying near a 3-month low against major world currencies. This is happening against the backdrop of the United States imposing new tariffs on imports from Canada, Mexico, and China, which has heightened concerns about an expanding global trade war.
On March 4, 2025, 25% duties on imports from Canada and Mexico, as well as an increase in tariffs on Chinese goods from 10% to 20%, came into effect. These measures affect an annual import volume worth about 1.5 trillion dollars.
In response to the US actions, Canada and China announced retaliatory tariffs on American goods. Canada's Foreign Minister Melanie Joly stated Ottawa's readiness to take mirror measures. China also expressed its intention to impose additional tariffs on American goods.
Amid these events, the US Dollar Index (DXY) decreased by 0.1% to a level of 105.51, remaining under pressure for the third consecutive day. Earlier, the index reached its lowest since December 6, dropping to 105.44.
Stock markets also reacted to the escalation of trade conflicts. The S&P 500 index fell by 1.2%, but futures for it showed a 0.6% increase on Wednesday. The MSCI World Stock Index decreased by 1.9% for the current week.
Senior financial markets analyst at Capital.com, Kyle Rodda, noted that concerns about weakening economic activity in the US and worldwide are reflected in the markets, and cyclical sectors are becoming drivers of sell-offs. He emphasized that uncertainty is high, and both investors and American businesses and consumers are cautious in the current situation.
Thus, the intensification of trade conflicts and the introduction of new tariffs are putting significant pressure on the US Dollar and global financial markets, increasing concerns about a slowdown in the global economy.