Market Tremors: Trump's Trade Turbulence

Global markets experienced turbulence as Donald Trump's presidency reignited trade-related apprehensions. His plans for 25% tariffs on Mexico and Canada sparked currency fluctuations and market volatility. The lack of concrete moves initially provided relief but left investors wary of future policy shifts.

Global markets grappled with uncertainty on Tuesday as Donald Trump resumed office, reigniting fears over his intentions for trade tariffs. The initial response was observed in Asia, with investors attuned to potential disruptions in trade relations ushered by Trump's administration.

Despite a momentary sigh of relief following Trump's inauguration speech that hinted at delaying tariff implementations, market stability was quickly upended. Trump's contemplation of imposing 25% tariffs on Mexico and Canada sent the Mexican peso tumbling 1% against the dollar, while the Canadian dollar hit a five-year low.

Such developments spurred volatility in global stocks and currency markets. "Markets need to brace for a volatile policy environment," stated Charu Chanana of Saxo. With no immediate tariff action, investors remain cautious, aware of the impending influence on economic dynamics.

(With inputs from agencies.)