2025-02-03
Former US President Donald Trump has once again created global economic unrest by introducing 25% duties on goods from Canada and Mexicoand 10% on Chinese productsThe decision has had widespread consequences for the global economy, with direct responses from affected countries and rising uncertainty in the markets.
Canada and Mexico's reactions
Prime Minister of Canada Justin Trudeau has responded by introducing 25% duties on American goods worth 155 billion dollarsThese tariffs target goods such as juice, beer, bourbon, clothing, sporting goods and lumber. Trudeau also urged the country's residents to actively opt out of American goods and avoid travel to the United States.
President of Mexico claudia sheinbaum has ordered its finance minister to implement a “Plan B,” meaning Mexico will take countermeasures to defend its economic interests. Mexico rejects Trump’s claims that the Mexican government is collaborating with criminal groups and sees the tariffs as a political maneuver.
Threats to Europe, Canada and Greenland
Trump has also targeted Europe, where he threatens extensive tariffs on European goods, especially in the automotive and agricultural sectors. According to Trump, “Europe has not been kind to the US”, and he sees it as a legitimate countermeasure to punish the EU with high fees.
In addition to this, Trump has once again raised the issue of Greenland, where his vice president JD Vance claims that Denmark is a “bad ally” and is not doing a good enough job of defending the island. Vance suggested that the US could simply “take control” of Greenland if necessary and claimed without evidence that the people of Greenland are unhappy with Denmark’s rule.
The Danish Prime Minister Puts Frederiksen has dismissed the claims, pointing out that Denmark has been a loyal ally of the US for many years. She also believes that Trump's tariffs could force Europe to respond with "very robust measures", even though it would mainly affect ordinary people.
How is Thailand and gold affected?
Trump's tariffs and the uncertainty they create have already affected global markets. One of the most obvious effects is on the gold price, which traditionally increases in uncertain times when investors seek safe assets.
On February 3, 2025, it was noted SPDR Gold Shares ETF (GLD) to 261,08 USD, a marginal increase but part of a larger trend where gold is seen as a stable investment opportunity. Several analysts warn that the situation could lead to further volatility in the market, which could push the gold price up further.
Escalating global uncertainty
It seems like the world is heading towards a deeper crisis of economic and political instability, where norms of sovereignty and trade relations are being undermined in a way that benefits no one. With increased protectionism and political statements creating unease in diplomatic relations, it is unclear who is really benefiting from the chaotic situation.
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Text: The editorial staff
Image license: JeanineW, Pixabay, original image