Trump announces new tariffs boosting US dollar while Chinese stocks stabilize

The US dollar rose 0.4% on Tuesday after Donald Trump announced new tariffs on imports from Canada, Mexico, and China. This follows a 0.6% decline on Monday, when investors reacted to his Treasury secretary nomination, which suggested a potential moderation in trade policies. Trump's plan includes a 10% tariff on China and a 25% tariff on all products from Canada and Mexico. This swift action contrasts with earlier market expectations of a more cautious approach, leading to a significant drop in the Mexican peso and a decline in the Canadian dollar. Chinese stocks remained mostly stable, with the Hang Seng index slightly up and the CSI 300 index showing minimal gains. Market reactions indicate some relief in China, as the tariffs were lower than anticipated. Other Asian markets, however, saw declines, particularly Japan's Nikkei 225, which fell 1.3%.