European and US futures slump as Trump says EU tariffs will ‘definitely happen’; stocks and cryptocurrencies tumble in Asian trading hours

• Trump says EU tariffs will ‘definitely happen’ as Mexico, Canada and China retaliate

Here’s a chart showing how Canada’s currency fell to its weakest level in more than 20 years overnight.

The loonie (as it’s known in foreign exchange circles) fell to $1.4793, its lowest level since 2003, amid a general surge in demand for the US dollar.

The immediate market impact late on Sunday was a sharp move higher in the US dollar. EUR/USD fell below $1.02 at one stage but has since recouped losses and is back above this level.

The Mexican peso initially fell 2% at the open, USD/MXN rose to its highest level since 2020, which is a fairly modest early reaction considering how negative these tariffs could be for the Mexican economy.