Asian markets decline and dollar strengthens as Trump warns of new tariffs

Asian markets declined and the dollar strengthened on Tuesday after Donald Trump announced plans to impose significant tariffs on China, Mexico, and Canada upon taking office. This announcement raised concerns about a potential trade war and inflation in the U.S. Trump stated he would implement a 25 percent tariff on all imports from Canada and Mexico and a 10 percent tariff on Chinese goods. His comments dampened hopes that his Treasury pick, Scott Bessent, would lead to a more moderate trade policy. While most Asian markets fell, Hong Kong saw a slight increase. The dollar rose against the Canadian dollar, Mexican peso, and Chinese yuan, but the Japanese yen gained strength as a safe haven asset.