Trump's Tariff Storm: Markets React to Aggressive Trade Policy

Donald Trump, U.S. President-elect, announced plans to impose tariffs on products from Mexico, Canada, and China, triggering market reactions. The dollar surged against the Canadian dollar and Mexican peso, affecting stock futures and Asian markets. Analysts suggest early renegotiation of the USMCA agreement.

On Monday, U.S. President-elect Donald Trump announced his intention to impose a 25% tariff on all products from Mexico and Canada, alongside a 10% tariff on goods from China, effective his first day in office.

This bold move led to a rally in the U.S. dollar, which gained 1% against the Canadian dollar and 2% against the Mexican peso. Consequently, U.S. stock futures and share markets across Asia experienced a downturn.

Analysts suggest this could be an effort to renegotiate the USMCA agreement with Canada and Mexico ahead of the scheduled 2026 review. While market reactions have been pronounced, experts indicate this could be part of Trump's strategy of making a strong statement and seeing how markets respond.

(With inputs from agencies.)