Trump's tariff plans for China boost dollar and weigh on Asian markets

US President-elect Donald Trump announced plans to impose significant tariffs on China, Mexico, and Canada starting on his first day in office. He stated he would implement a 25% tariff on imports from Mexico and Canada and a 10% tariff on Chinese goods. Following this announcement, the dollar strengthened, rising over 1% against the Canadian dollar, Mexican peso, and Chinese yuan. Most Asian markets declined, reflecting concerns over a potential trade war and inflation, although Hong Kong and Shanghai saw slight gains. The news contrasts with earlier optimism regarding Trump's Treasury pick, Scott Bessent, who was expected to moderate trade policies. The announcement has raised fears of a return to aggressive trade tactics reminiscent of Trump's previous administration.