A. M. The US dollar rose sharply after President Donald Trump announced the implementation of 25% tariffs on imports from Canada and Mexico as of march 4. The news triggered a drop in the value of the Mexican peso and the Canadian dollar, reflecting market concerns about possible trade retaliation.
The spot dollar index rose 0.5%, marking its biggest increase in three weeks, Bloomberg reported. The move is part of Trump’s strategy to reduce the trade deficit and strengthen U.S. industry, although economists warn of possible adverse effects on trade and investment.
In addition to the tariffs on its neighbors, Trump confirmed that China will face an additional 10% tariff on the same date. He also reiterated that the april 2 reciprocal tariff will remain in place, which could intensify trade tensions with the Asian giant.
Markets reacted with volatility after the announcement, with a fall in the currencies of the affected countries and movements in commodity prices. Exporting companies and sectors dependent on international trade expressed their concern about the impact that these tariffs could have on their costs and competitiveness.
Trump’s announcement generates uncertainty in the global economic outlook, with experts warning of possible trade retaliation and negative effects on economic growth. Meanwhile, the Canadian and Mexican governments are evaluating their options to respond to the new measure.
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