It goes up the dollar and the prices of Asian shares fall after the Trump announcements for new tariffs

The dollar was strengthened and their prices in Asia declined after the elected president stated that the US would impose additional duties on China, Mexico and Canada, strengthening concerns about his policy of “First America”. Asia’s main stock index, according to Bloomberg, declined up to 1% and European futures contracts showed a weak opening after Trump announced to impose additional 10% duties on Chinese imports and 25% contributions on all products from Mexico and Canada. Measures are necessary to crush immigrants and illegal drugs crossing the US border, he told the social network Truth. Bloomberg Dollar Spot Index index rose up to 0.7% before restricting its profits, while China’s offshore wan weakened by 0.4% and Mexican peso and Canadian dollar fell by over 1%. The futures of American shares retreated before eliminating the reductions. “The upcoming president started early, but this could only be a surprise for those who have forgotten the 2016–2020 period,” said Kieran Calder, head of stock survey for Asia at Union Bancaire Privee in Singapore. “This is President Trump’s negotiating style: step one, punch in the face, step two, let’s negotiate”. The Canadian dollar retreated to a low of four years on the occasion of the news, while the Mexican peso negotiated near its weakest level since 2022. Goods coins, such as the Australian dollar and the New Zealand dollar, retreated. “Trump’s threat of even more tariffs will give another boost to the US dollar,” said Carol Kong, a strategic analyst for Commonwealth Bank of Australia in Sydney. “Aussie and kiwi will be swept down because of their ties to the Chinese economy”. China’s main stock index ranged between profits and losses, overcompensating against most regional other indicators “The markets expected the tariffs, but the size is the key,” said Ken Wong, an Asian stock portfolio expert at Eastspring Investments. “At present, anything less than the 60% rate of duty should be considered positive”. The CSI 300 indicator may have been supported by the steep markets after a two-day fall, as well as by the expectations that Beijing will step up fiscal relaxation to support economic growth ahead of increasing geopolitical tensions. China’s central bank determined daily fixing for Wan at a high of one week, pushing the dollar rally. The People’s Bank of China has consistently set its daily reference rate stronger than 7.2 per dollar after the American election, despite the increasing volatility of the dollar. The gold showed little change, after initially retreating after Trump’s comments. The gold traded close to $2,630 per ounce after a 3.4% drop on Monday due to the relaxation of tensions in the Middle East. Oil was cast higher, while copper retreated. Trump’s posts came after the rise of American shares and state bonds Monday, as traders welcomed Scott Bessend’s choice from upcoming president for the finance ministry, betting that the hedge-fund manager would bring a Wall Street mentality to the role.