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ForexLive Asia-Pacific FX news wrap:Trump Canada, Mexico tariffs remarks trigger FX swings

Trump
signed a long list of Executive Orders late in the US afternoon, but
did not do so on tariffs. He did, however, float a number of ideas on
what he might do with tariffs:

  • 25%
    tariffs on Mexico & Canada could start in 10 days
  • China
    could be hit with major tariffs if they don’t sell TikTok, suggests
    100% as possibility
  • A
    universal tariff on all countries is still on the table

It
was that first remark, 25% for Mexico & Canada in ten days that
hit markets like a hammer. Major FX dropped against a resurgent US
dollar. USD/CAD rose to circa 1.4515, while EUR, AUD, NZD, GBP, CHF
and JPY dropped hard.

USD/JPY
had dipped briefly below 155.00 before it was shunted to highs around
156.20.

USD/JPY
began dropping away again as Trump’s remarks were examined
in light of him requesting a report from the Secretary of Commerce by
April 1, 2025. USD/JPY fully retraced and then dropped under 155.00
to lows circa 154.79.

For
those who were around for Trump’s first term you’ll recall what
he says does not always match up with facts (in this case April 1 is
not 10 ten days away!), but he does create market movement!

This article was written by Eamonn Sheridan at www.forexlive.com.

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