Trump’s Tariff plans shake markets
Tariff Speculations Weigh on GBP/USD, Boost Gold and Oil

The Mexican peso and Canadian dollar weakened sharply
Gold surged to around $2,729
WTI crude traded near $76.15
President Trump signed several executive orders but refrained from enacting immediate tariff measures in the first phase. However, he announced plans to implement a 25% tariff on imports from Mexico and Canada starting February 1. This decision is significant given that imports from these two countries exceeded $890 billion last year. Retaliatory actions from Canada and Mexico are likely, raising concerns about their potential impact on U.S. businesses. Additionally, Trump warned of serious tariffs on China if the TikTok acquisition deal fails to materialize.
Currencies
The announcement triggered notable turbulence in the currency markets, particularly affecting the Mexican peso (MXN) and the Canadian dollar (CAD).
USDCAD gained nearly 0.95%. Meanwhile, the U.S. dollar partially recovered from its pre-inauguration losses, supported by expectations of inflationary pressures.
GBP/USD depreciated after reports of President Donald Trump directing federal agencies to review tariff policies. The financial landscape is adjusting to the first day following the inauguration of President Trump, with markets showing cautious sentiment toward his initial executive decisions.
Commodities
Gold
Gold prices extended their rally, reaching around $2,729, the highest level since November 6. The metal's appeal as a safe haven surged amid tariff concerns and declining U.S. Treasury yields. Market bets on two Federal Reserve rate cuts this year further bolstered gold prices. Despite a modest recovery in the U.S. dollar, the outlook for gold remains bullish, driven by protectionist policies and inflation expectations.
Silver
Silver also reversed earlier losses, continuing its upward trend for a second day, supported by a favorable technical setup.
In the energy market, West Texas Intermediate (WTI) crude oil traded near $76.15. Traders are awaiting further clarity on Trump's economic plans, with dips near the $30.00 mark expected to attract buying interest.