In currency markets, the dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.25%
Canadian
The dollar lost 0.26% and the peso was 0.24% higher in choppy trading.
Trump is threatening punitive duties unless Canada and Mexico take stronger action to stem the flow of the deadly opioid fentanyl and precursor chemicals into the U.S., as well as illegal immigration. Goldman Sachs economists estimate that all tariffs on Canada and Mexico would mean a 0.7% increase in core inflation and a 0.4% reduction in gross domestic product.
“There is a lot of market complacency in terms of how the market can digest tariffs,” Michael Nizard, chief investment officer for multi-assets at Edmond de Rothschild, said earlier Friday.
The euro and pound sterling fell by about 0.1% against the dollar.
Friday's data showed that the U.S. personal consumption expenditure price index rose 0.3% last month after an unrevised 0.1% rise in November, in line with economists' expectations.
“Disinflation is ongoing and should continue given the underlying trends,” David Alkali, chief macroeconomic strategist at Lazard Asset Management, said in an email.
"Concerns about recent inequality are overblown and have more to do with the potential for inflationary policy changes, like tariffs, than with current conditions."
The benchmark 10-year Treasury yield jumped after Trump's tariff plans, rising 3.7 basis points to 4.549%.
Data on Thursday showed that U.S. economic growth slowed in the fourth quarter but remained strong enough for investors to expect the Federal Reserve, which held interest rates on hold on Wednesday, to lower borrowing costs only gradually this year.
Eurozone short-term government bond yields were on track for their biggest weekly drop in months after a flurry of weak economic data prompted traders to increase their bets on future rate cuts from the European Central Bank. The ECB cut rates on Thursday and signaled that more easing was coming.
Oil prices fell on Friday and closed the week lower.
Gold prices topped the key $2,800 mark for the first time on Friday, fueling a rush to safety.