Investors adapt strategies as Trump prepares for new tariffs

Investors are adjusting their strategies as Donald Trump prepares to take office again. Following his announcement of new tariffs on Mexico, Canada, and China, the U.S. dollar rose sharply while the Mexican peso, Canadian dollar, and Chinese yuan fell. Trump's proposed tariffs include a 25% tax on imports from Canada and Mexico and a 10% tax on Chinese goods. These announcements have caused concern among manufacturers, particularly in the automotive sector, as they may violate existing trade agreements. Despite the volatility, some investors feel more prepared to handle Trump's negotiation style compared to his first term. They anticipate that any finalized trade policies may differ from initial proposals, reflecting a cautious optimism in the markets.