The latest round of tariff threats from President Trump could spark fresh concerns about inflation, which might force the Federal Reserve to maintain its wait-and-see posture on interest-rate cuts, sa

The Dow, S&P 500 and Nasdaq retreat from record highs as President Trump rolled out a fresh tariff against Canada, following Brazil hit. Meanwhile, the Federal Reserve and Chairman Powell are under fire for spending on renovations.

The dollar edged up across the board on Friday as U.S. President Donald Trump's ramped-up tariffs on Canada and other trading partners sparked a flight to safety.Trump issued a letter late on Thursday that said a 35% tariff rate on all imports from Canada would apply from August 1.

President Trump said the U.S. will impose steep levies on imports from 20 countries starting next month, raising pressure on trading partners.

This week, the president began sending letters to U.S. trade partners outlining what their proposed tariff rates will be.

President Donald Trump started his week with the devastating news of deadly floods in central Texas while also negotiating a peace deal with Israeli Prime Minister Benjamin Netanyahu. CNN’s Kaitlan Collins reports on a week that also saw a reciprocal tariffs deadline move to August and questions over who ordered a Ukraine weapons pause.

The yen, for its part, has been steadily weakening as the prospects dim for a U.S.-Japan trade deal. The dollar was up 0.6% on Friday at 147.12 yen and is headed for a weekly gain of 1.7%, the biggest this year.

Canada would bear the brunt of Trump's tariffs in terms of economic contraction, says The Budget Lab of Yale.