The dollar surged sharply after Donald Trump announced plans to impose tariffs on all imports from Canada and Mexico and additional tariffs on China.
Asian stock markets fell after Mr. Trump announced plans to impose an additional 10% tariff on goods from China. He criticised Chinese officials for failing to honour a commitment to enforce the death penalty for drug dealers, specifically referencing fentanyl, which is estimated to have caused around 75,000 deaths in the United States last year.
The currency gained 1% against the Canadian dollar and 2% against the Mexican peso, while Asian stock markets declined.
Japan’s Nikkei fell 0.9%, erasing most of Monday’s gains, as investors weighed the impact of tariffs on key exports, particularly from its automotive sector.
Australia’s benchmark index slipped 0.7%, following a record high the previous day, and Taiwan’s share index dropped 1%. Meanwhile, Hong Kong’s Hang Seng remained flat, and mainland Chinese blue-chip stocks edged down 0.2%.
On Wall Street, the Dow Jones Industrial Average rose 1% to a record closing high of 44,736.57. The S&P 500 added 0.3%, reaching 5,987.37, while the Nasdaq Composite matched this increase, closing at 19,054.84.
In the bond market, the yield on 10-year US Treasury notes declined to 4.269%, down from 4.354% at Friday’s close.
