Investors adapt strategies as Trump signals new tariffs on trade partners

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 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% tariff 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 significantly from his initial proposals.