Markets react to Trump tariff threats as US president-elect targets key trading partners

Wall Street initially reacted positively to the US president-elect's Treasury secretary nomination, viewing it as a stabilizing choice. However, Donald Trump quickly shifted the mood by threatening tariffs on Mexico, Canada, and China, causing market declines. Following Trump's tariff announcement, US stock futures and the Australian share market fell. The Australian dollar weakened as the US dollar strengthened, reflecting immediate market reactions to Trump's statements. Analysts caution that the market's response may be exaggerated due to lower trading volumes after hours. They note that while the US tariffs may not directly impact Australia, the broader economic effects could influence demand for Australian exports.