Trade Turmoil: Markets React to Trump's Shocking Tariff Decisions

Global financial markets reacted sharply as President Trump imposed drastic tariffs on Chinese imports while pausing levies on many other nations. Safe-haven assets like the yen, Swiss franc, and gold soared. Observers noted a dip in confidence in the U.S. economy amid these erratic trade policies.

In a dramatic swing of trade policies, U.S. President Donald Trump imposed steep tariffs on Chinese imports while temporarily lifting levies on many other countries. This move sent traders scrambling for safe-haven assets like the yen and Swiss franc, with gold nearing its record peak.

Treasury bonds gained in Asian hours, reversing the trajectory of U.S. yields and applying pressure on the dollar. Analysts are warning of a possible crisis of confidence in the U.S. currency due to Trump's inconsistent trade stances. Meanwhile, the Australian and New Zealand dollars initially dipped, linked to their trade reliance on China, but rebounded as markets rallied.

China responded with additional tariffs, raising tensions and suggesting economic warfare. The yuan touched its lowest level since 2007 before recovering slightly. Economists predict further escalation in U.S.-China trade conflicts. As markets and currencies fluctuated wildly, gold rose, underscoring investor unease with Trump's policies.

(With inputs from agencies.)