The dollar surged on news of former U.S. President Donald Trump’s plan to reimpose tariffs on Mexico and Canada, targeting key trade flows in North America. The proposal, announced during a policy address, reignited concerns over trade tensions and their potential impact on the U.S. economy. Investors reacted swiftly, pushing the dollar higher against major currencies as markets factored in the likelihood of economic disruption.
Trump’s tariff strategy is designed to protect U.S. industries, but analysts warn it could backfire by increasing costs for businesses reliant on cross-border trade. The move could also strain the USMCA agreement, raising questions about its long-term stability. The renewed trade tensions come as the global economy faces heightened uncertainty, with the dollar benefitting as a safe haven amidst the volatility.
