Dollar strengthens as Trump announces tariffs on Mexico and Canada

The U.S. dollar strengthened against major currencies after President-elect Donald Trump announced plans for a 25% tariff on imports from Mexico and Canada. The dollar rose over 2% against the Mexican peso and 1% against the Canadian dollar. Trump's tariff announcement comes after his nomination of Scott Bessent as Treasury Secretary, a choice that had initially eased market concerns. The dollar index reached 107.37, with the euro and British pound both declining against the dollar. In related news, Trump stated that China would face an additional 10% tariff on its products unless it takes stronger action against drug trafficking from Mexico. Meanwhile, bitcoin fell to $93,577 after reaching a record high over the weekend.