President Trump on Thursday threatened to impose a 35% tariff on Canadian goods beginning Aug. 1. Mr. Trump's latest salvo came after he also threatened tariffs on a number of other countries earlier in the week,

The threatened measures against Brazil will add to the growing uncertainty and fears in financial markets as to where the tariff war is leading, causing further questions to be raised about the stability of the US dollar as the global reserve currency.

The euro and Mexican peso fell after U.S. President Trump threatened to impose 30% tariffs on imports from Europe and Mexico. The markets reacted with muted responses as investors have become desensitized to Trump's trade threats.