Trade war anxiety has once again crept into investors’ minds and is seriously affecting the financial markets. After Donald Trump’s most recent statements regarding additional tariffs on Chinese goods, as well as the difficulty in negotiating a trade deal with Canada, the American dollar once more acquired the status of the world’s favorite safe-haven instrument. This drew investor interest and pushed the value of the USD up, while stock markets suffered. The drop is especially noticeable in Asian stocks, but all regions were affected.
President Trump was hoping for smooth sailing after he reached a trade deal with Mexico, but Canada, the third party in the North American Free Trade Agreement, is currently giving him more trouble than expected. There are several points of the agreement that Canada insists on keeping, which is putting a wrench in Trump’s plans.
Moreover, the current financial problems going on in Argentina and Turkey are increasing the uncertainty levels on the markets, which is also pushing investors to back the USD.
