Volatile Markets React to Trump's Tariff Surprises

Investors faced market turmoil as Donald Trump began his presidency with unexpected tariff announcements, impacting currencies like the Canadian dollar and Mexican peso. Despite some conciliatory rhetoric on trade deals and energy sales, Trump's tactics led to market uncertainty, highlighting the need for constant vigilance.

Investors braced for tumult as markets reacted sharply to Donald Trump's inauguration, reflecting fears surrounding his return to the presidency. Currency traders, in particular, experienced significant volatility.

Initially, the lack of immediate tariff threats provided a brief respite, but Trump's subsequent announcement of 25% levies on Canada and Mexico caught many by surprise, leading to a dramatic fall in the loonie and peso.

While some investors speculated that Trump's moves might be strategic, aiming to renegotiate trade terms, markets remained on edge. Analysts noted the ongoing challenges, especially with Trump's historical focus on tariffs as a tool for negotiation.

(With inputs from agencies.)