President Trump's imposition of tariffs on Canada, Mexico, and China triggered a sharp selloff in global markets, sending the US dollar higher and other currencies tumbling. The move, which experts had not anticipated until much later in Trump's term, has raised concerns about a full-blown trade war.
The US dollar surged on Monday, triggering a global currency rout as President Donald Trump's sweeping tariffs ignited a trade war . The greenback's gains were broad, pushing its Canadian and Mexican counterparts to multi-year lows, while China's yuan slumped to a record trough in offshore trade. The euro dropped to a more than two-year low and the Swiss franc slid to the weakest since May, despite typically acting as a haven.
\Trump, as promised last month, imposed duties of 25 percent on Canada and Mexico, and a 10 percent levy on China, citing the need to combat illegal immigration and the drug trade. Markets had widely anticipated that these tariffs would only materialize in the second half of 2025 after lengthy negotiations with key trading partners. This sudden move, just two weeks into Trump's four-year term, has shaken investor confidence.\Canada and Mexico immediately vowed retaliatory measures, challenging Trump's levies at the World Trade Organization. China also pledged to respond, further escalating the trade tensions. The Australian dollar hit a five-year low, while the New Zealand dollar fell to its lowest since October 2022. These Antipodean currencies are often used as proxies for the Chinese yuan. The Mexican peso fell to its lowest in nearly three years, and the Canadian dollar slumped to its weakest level since 2003. Investors also pared expectations of rate cuts from the Federal Reserve, anticipating a more hawkish stance due to the heightened economic uncertainty. Bitcoin and Ether, both traditionally sensitive to market volatility, also saw significant declines, falling below key support levels
TRADE WAR TARIFFS US DOLLAR GLOBAL MARKETS CANADA MEXICO CHINA
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