As Trump had promised last month, USA imposed to Canada and Mexico 25% tariffs already China A 10% tax over the weekend, considering them necessary to stop immigration and drug trafficking. The rates will go into force at noon boreal on Tuesday.
Canada and Mexico, The two main business members of the United States immediately promised retaliation measures, and China He said he would challenge Trump’s taxes in the World Trade Organization.
“The surprise for markets is that Canada and Mexico They took reprisals immediately and others, that is, China and the EU, could follow their example, which would result in a strong contraction of world trade, “said Tony Sycamore, market analyst from IG to Reuters.
“The date of entry into force of US tariffs on Canada, Mexico and China, On February 4, it was also long before many had anticipated, “he added.
Market expectations
Some investors expect tariffs to boost inflation in USAfeeding the vision that interest rates could remain higher for a longer time and provide support to the dollar.
The markets reduced the expectations of rates cuts by the Federal Reserve Following the news about tariffs, and futures estimate a probability of approximately 54 % of two cuts this year.
He dollar American advanced 0.34% to 7.34 yuan in the offshore market, having previously reached a historical maximum of 7,3765 yuan. The markets in China remain closed for the New Year Lunar and will resume their operations on Wednesday.
The Mexican peso fell to its lowest level in almost three years to 21,2882 per US dollar and then dropped 2.3% to 21,1540, while the Canadian dollar fell to 1,4792 per US dollar, a level not seen since 2003. The Canadian dollar finally finally finally 1% fell to 1,4689 per US dollar.
The Australian dollar touched a minimum of five years, while the New Zealander dollar fell to its lowest level since October 2022. The two antipodes currencies were often used as liquid substitutes of the Chinese yuan.
“Investors will be in embers waiting to see if any telephone conversation today between President Trump and his counterparts from Canada and Mexico You can yield some result in 24 hours, “said Chris Turner, Global Markets Director of ING.
“The currency market will be attentive to the consequences in shares markets. For example, will US actions fall sufficiently to fix the price of a monetary flexibility cycle more moderate by the Federal Reserve? “He questioned. The futures of US actions pointed down on Monday.
He euro He collapsed 2.3% to $ 1.0125, its lowest level since November 2022, while investors prepared for tariffs that the Trump administration would impose to Europe. The single currency dropped 1.16% to $ 1,0242.
Trump said during the weekend that tariffs would apply to the European Union, But he didn’t say when. He dollar American came to add 1.1%, up to 0.9210 per Swiss Franco, its highest level since last May, before quoting at 0.9165 francs. The sterling pound fell 0.7%, up to $ 1,2312. He Japanese He was more resistant and had practically unchanged at 155.23 per dollar.
That left dollar indexthe index, which measures the American currency in front of six other units, was strengthened and stood at 109.48. He had played a maximum of three weeks in the first operations. Meanwhile, the Bitcóin It was quoted at $ 95,660, going back below $ 100,000 to its lowest level in almost three weeks. He Ether It fell sharply to its lowest level since the beginning of November and was last stood at 2,593.15 dollars.
Source: Ambito
