The US dollar tumbled to a three-month low against major currencies after President Donald Trump warned Americans about the repercussions of his global trade war.
The currency weakened broadly, with the pound climbing above $1.28 for the first time since December.
Trump acknowledged that the US was experiencing “a little disturbance” due to the tariffs he imposed on Canada, Mexico, and China on Tuesday.
The 25% levies on key allies erased the S&P 500’s gains since his election in November.
Meanwhile, a fresh 20% tariff on Chinese imports has been introduced, but Asian markets rallied overnight after Beijing reaffirmed its 5% economic growth target for the year.
Addressing Congress on Tuesday, Trump announced that additional tariffs would take effect on April 2, including “reciprocal tariffs” and other measures designed to counter years of trade imbalances.
Remarks by US President Donald Trump in his speech to Congress and the nation had little apparent effect on global markets.
Meanwhile, China confirmed plans to maintain economic growth at approximately 5% in 2025, aligning with last year’s target, as it commenced its annual legislative session. Premier Li Qiang also pledged increased government spending and additional measures to stimulate growth.
Europe’s aerospace and defence index surged to a new record high, climbing 3.7%.
Meanwhile, the euro strengthened 0.8% against the dollar, reaching $1.0711.
