As of early August 2025, President Trump has escalated trade tensions by introducing new tariffs targeting several major economies. The current announced tariff rates are as follows:
| Country | Tariff Rate |
| EU, Japan, South Korea | ~15% |
| United Kingdom, Australia | ~10% |
| Canada | ~35% |
| Mexico | 25% |
| India | 25% → 50% (by Aug 27) |
| Brazil | 10% |
| China | ~30% |
| Switzerland | ~39% |
| Copper (all imports) | 50% |
Broad tariffs affecting Canadian, European, Indian, and South Korean goods are now rippling through sectors such as automobiles, electronics, and pharmaceuticals. Economists such as Nobel laureate Joseph Stiglitz warn that such sweeping trade barriers are “almost surely inflationary,” with potential to dampen global economic activity.
Tariff Impact on Forex, Commodities and Indices
Forex Volatility and Dollar Strength
- Risk-sensitive currencies such as the Chinese yuan, Mexican peso, South Korean won, and Canadian dollar have volatility as trade tensions intensify.
- The U.S. dollar and Swiss franc have strengthened due to risk-off sentiment and investor flight to safety.
Global Indices Face Pressure
- Stock markets across Europe and Asia have weakened in Q1 2025 as investors react to growth concerns and trade policy uncertainty.
- India’s markets are under pressure amid foreign capital outflows and trade-related challenges.
- Canadian markets, especially export-linked sectors, have also experienced declines ahead of new tariff measures.
Commodities and Safe-Haven Assets React
- Copper and other industrial metals are seeing price increases as tariffs tighten global supply expectations.
- Agricultural commodities remain relatively stable, with some investors viewing them as an inflation hedge if they are affected by the supply chain disruptions.
- Gold prices have continued to rise in 2025, supported by increased risk aversion and lower bond prices.
How ATFX Can Help Traders Navigate the Current Tariff Turbulence
Multi-Asset Access and Positioning with CFDs
ATFX clients can trade forex pairs, commodity CFDs, and equity indices within one account. This allows strategic positioning across markets impacted by tariff announcements and policy shifts.
Example of current market movements to watch:
- USD/CNY or USD/KRW: Currency pairs sensitive to developments in Asian export economies amid tariff announcements.
- Gold and copper CFDs: Popular instruments during periods of inflation concern or potential supply chain disruptions.
- Emerging market or India index CFDs: Often affected by global investor sentiment and capital flows during heightened geopolitical risk.
Trading Tools, Education and Signals
ATFX supports traders with tools that enhance both decision-making and strategy execution.
- Get technical analysis and sentiment tools through Trading Central to support your strategy.
- Stay informed with ATFX’s research reports, webinars, and market updates that explain how trade tensions impact forex, indices, and commodities.
Strategy and Risk Management Tips
With trade tensions rising, these risk management principles and tools can help traders stay prepared
- Diversify across asset classes, including forex, commodities, and indices, to reduce concentration risk.
- Scale into positions gradually and always use stop losses to manage sudden volatility from policy changes.
- Use moderate leverage, especially during periods of elevated uncertainty. Track tariff announcements and macro risk events using ATFX’s live economic calendar with alert capabilities.
- Support your analysis with ATFX-provided tools like technical signals from Trading Central and real-time pattern alerts from Autochartist.
Key Trader Takeaways
- New U.S. tariffs are now in effect, adding pressure to global trade and growth.
- Forex volatility is rising, with the U.S. dollar strengthening as risk-off sentiment grows.
- Commodities like gold and copper are moving on supply risks and inflation concerns.
- Markets in emerging economies face downside pressure amid capital outflows.
- CFDs offer tactical access to forex, commodities, and indices during policy shifts.
- ATFX supports traders with tools, education, and access to stay adaptive.
ATFX Market Outlook
The latest round of tariffs has triggered renewed volatility across global markets, affecting currencies, commodities, and broader investor sentiment. For traders, this environment presents both risks and opportunities.
With ATFX, you gain access to the tools, insights, and asset classes needed to stay agile and informed. Whether you’re navigating short-term price swings or positioning for longer-term moves, ATFX supports your strategy in uncertain times.
Stay ready. Stay adaptive. Trade with confidence.
