The U.S. dollar gained momentum on Monday as reports surfaced that former President Donald Trump may propose additional tariffs on Canada and Mexico. This news heightened trade tensions and bolstered the greenback’s safe-haven appeal in global markets. The proposed tariffs, reportedly targeting key sectors, would reignite trade uncertainties within the USMCA framework, analysts suggested.
Market reaction was swift, with investors flocking to the dollar as a hedge against potential economic disruptions. Strengthened trade rhetoric from Trump’s camp has raised concerns over possible retaliatory measures from Canada and Mexico. Currency pairs such as USD/CAD and USD/MXN saw notable volatility, reflecting the market’s sensitivity to policy shifts. Economic analysts warn that such actions could strain regional trade relations and dampen investor sentiment in North America.
