Global Markets Rocked! Trump Unleashes 100% Tariff Threat on Canada, Gold Soars to Record Highs

TRUMP'S SHOCK TARIFF THREAT! CANADA IN CROSSHAIRS AS TRADE WAR LOOMS!

The global economy is on edge after former U.S. President Donald Trump unleashed a stunning threat. He vowed 100% tariffs on all Canadian goods. This aggressive stance targets Canada's trade activities with China. The announcement has ignited a furious debate and sent markets reeling. Gold, a traditional safe haven, immediately surged to unprecedented levels.

Trump's Fury: "China Will Devour Canada!"

Trump's warning came via social media. He accused Canadian Prime Minister Mark Carney of planning to make Canada a "Drop Off Port" for Chinese goods. "China will eat Canada alive, completely devour it," Trump declared. He warned of the "destruction of their businesses, social fabric, and general way of life." This rhetoric signals a major escalation in trade tensions between the two North American allies. The threat of a 100% tariff is unprecedented. This could severely disrupt supply chains and consumer prices.

Carney Claps Back: "No Free Trade Deal!"

Canadian Prime Minister Mark Carney swiftly responded. He reassured markets and citizens that Canada is not pursuing a free trade agreement with China. Carney stated that recent engagement with Beijing focused only on resolving specific tariff disputes. "We have commitments under CUSMA not to pursue free trade agreements with non-market economies," Carney affirmed. He emphasized Canada's intention to honor its existing trade pact with the United States and Mexico. This direct rebuttal aims to de-escalate the sudden trade crisis.

Gold Soars: A Safe Haven in Stormy Seas

The geopolitical uncertainty triggered an immediate flight to safety. Investors piled into gold, pushing its price to a historic peak. Spot gold surged 2.2% to $5,089.78 per ounce, briefly touching an all-time high of $5,110.50. This marks the first time gold has topped $5,000 an ounce. Fears of an impending U.S. government shutdown also contributed to the gold rush. The rally reflects widespread market anxiety over potential trade wars and global instability.

UK Business Battles Headwinds

Across the Atlantic, UK businesses are facing their own battles. The Starmer government quietly scrapped the long-anticipated Audit and Corporate Governance Reform Bill. This decision, coming eight years after major flaws were exposed, drew criticism. The Institute of Chartered Accountants in England and Wales (ICAEW) voiced disappointment. The Guardian called the move "feeble."

Meanwhile, the UK hospitality sector is struggling. Hundreds of businesses shut their doors in late 2025. A staggering 382 fewer licensed premises operated by December's end. Rising operating costs and impending tax hikes are blamed for the closures. UK businesses also rank cyber breaches as a top concern. Over half of leaders, 58%, view them as a significant risk. New cyber security legislation, effective in 2026, will tighten reporting.

Canada's Economic Crossroads

Beyond the tariff dispute, Canada faces domestic economic pressures. The Bank of Canada is widely expected to hold its key interest rate steady this week. Economists predict no change for the rest of the year. Affordability remains a central theme as Canadian parliamentarians return to session. The rental market in major cities like Toronto is seeing shifts, with some areas offering lower prices and move-in incentives. This offers a glimmer of hope for tenants.

However, food insecurity remains a crisis. Food Banks Canada CEO Kirsten Beardsley warns of record numbers seeking aid. Immediate action is needed to curb this growing problem.

USA: Economic Forecasts and Challenges

In the United States, senior Trump administration officials predict a strong economic boom for 2026. They forecast over 5% growth in the first quarter. Commerce Secretary Howard Lutnick even suggested 6% growth by year-end. These projections are fueled by expected Federal Reserve rate cuts and large tax refunds.

However, experts caution that maintaining such growth is a "tough hill to climb." Persistent trade tensions, including Trump's tariffs, could hinder sustained expansion. Business uncertainty from shifting economic policies also presents a challenge.

What's Next

The immediate future hinges on the Canada-US trade dispute. Will Trump escalate his threats further? Will Canada's measured response be enough to calm tensions? The markets will be watching closely for any new developments. Gold prices could continue their ascent if uncertainty persists. Central bank decisions, especially from the Bank of Canada, will also shape the economic outlook. Businesses in the UK must navigate rising costs and new cyber regulations. The global economy remains volatile, demanding close attention from leaders and investors alike.