Top story for the morning: Trump announces duty for Canada, JPMorgan CEO warns markets

Donald Trump threatened Canada with 35% duties from August 1, accusing Ottawa of retaliating against the U.S., and promised to name a bet on the EU in the coming hours. JPMorgan CEO Jamie Dimon warned of dangerous complacency in the markets over trade policy. Bitcoin set a new record above $116,000 amid excitement in the options market, institutional demand and expectations of regulatory easing. These and other topics are covered in our roundup of key events for the morning of July 11.

U.S. President Donald Trump has threatened to impose a 35 percent duty on imports from Canada starting August 1, reports CNBC. "Instead of cooperating with the United States, Canada has responded with duties of its own," Trump said in a letter to the country's Prime Minister Mark Carney published on the Truth Social network.

He stressed that this tariff would be separate from sectoral duties: currently, Canadian imports are already subject to a 50-percent duty on steel and aluminum, a 25-percent duty on automobiles, and a 50-percent duty on copper will take effect on August 1. Trump also warned that the 35 percent duty could rise if Canada continues to adopt retaliatory trade restrictions.

In addition, the president toldNBC that he will announce tariffs still on the EU in the coming hours and that he is considering imposing across-the-board duties of 15% or 20% on most trading partners.  "I think the duties have been received very favorably. The stock market made a new high," Trump said in a TV interview. ;

JPMorgan Chase CEO Jamie Dimon warned that markets are overconfident about planned trade duties and underestimating the risks of higher rates, writes Bloomberg.  "Unfortunately, I think markets are overreacting to the news about duties," he said at an event in Dublin. 

Dimon said he believes the probability that the U.S. Federal Reserve will raise rates is higher than most people think. He believes the regulator could do so,  despite Wall Street expecting the opposite. "If the market puts the probability [of a rate hike] at 20%, I estimate it at 40-50%," Dimon clarified.

Bitcoin continues its record-breaking rally: it broke the $116,000 mark for the first time on Thursday, reports Bloomberg, and was even climbing to $118,000 on Friday. 

After the largest cryptocurrency reached that level, open interest - that is, the number of outstanding contracts on the Deribit exchange - centered around call options with targets of $115,000 and $120,000. For longer-term options expiring in late September and December, there has been an increase in interest with strikes of $140,000 and $150,000, the agency notes.

This rally has sparked a massive closing of short positions, with more than $1 billion worth of bets against the token liquidated in the past 24 hours, according to Coinglass data cited by Bloomberg. Investors have rushed into bitcoin-ETFs, putting $1.2 billion into them on Thursday. 

Bitcoin's breakout, which is largely fueled by institutional demand, was another confirmation of crypto bulls' confidence, especially after the November election, Bloomberg points out. They are betting that Trump's second term will bring more lenient regulation of the industry. Bitcoin has risen in price by about 25% since the beginning of the year amid appetite for risk assets, including stock markets, which have also hit all-time highs.

India is on track for a record year for IPO fundraising: it has peaked thanks to falling interest rates and sustained domestic demand for equities, writes the Financial Times. 

Listings have raised $6.7 billion since the start of the year, compared with $5.4 billion in the same period in 2024, making India the largest IPO market outside the US, according to Dealogic. It is expected that a number of large offerings - notably Tata Capital's $2 billion IPO - could push last year's total to more than $21 billion.

"We will see a significant acceleration in primary market activity in the second half of the year compared to the first half," said Sunil Khaitan, managing director and head of India finance at Goldman Sachs.  He predicts that up to $20 billion will be raised over the period. 

The Nifty 50 stock index has rebounded after a weak start to the year due to signs of a slowing economy, tariff pressure from the US and a brief conflict with Pakistan. The index is now adding around 7% in 2025 and is nearing an all-time high.

Markets in the Asia-Pacific region posted gains as the U.S. president announced a duty on Canada.

- Japan's Nikkei 225 index rose 0.51% at the opening, but then lost all of its gains. The Topix index added 0.4%.

- South Korea's Kospi jumped 1% in early trading but closed down 0.2%. The Kosdaq index of small companies rose by 0.3% at the end of the day.

- Markets in Hong Kong and China also opened higher, with Hong Kong's Hang Seng Index adding 1.6 percent and the mainland's CSI 300 Index adding 0.5 percent.

- Singapore's Straits Times index rose to a new high, adding 0.5%. 

Futures on leading U.S. indexes reacted to Trump's announcement with a decline of at least 0.3%. 

This article was AI-translated and verified by a human editor