Global markets tumbled as the US dollar soared, driven by the President Donald Trump’s latest tariffs on Canada, Mexico, and China. The US dollar index gained 1.1% to 109.6, triggering sharp declines in Asia-Pacific currencies. The Chinese offshore renminbi dropped 0.4% to Rmb7.35 per dollar, the Malaysian ringgit lost 1%, while the Australian and New Zealand dollars fell 1.3% and 1.5%, respectively.
Asian stock markets also slumped, with Japan’s Nikkei 225 sliding 2.3% and South Korea’s Kospi shedding 2.2%. The yen weakened to ¥155.5 per dollar, and the South Korean won dropped to Won1,468.8.
Trump signaled further trade tensions, vowing to “definitely” impose tariffs on the European Union, accusing it of unfair trade practices. When asked if the UK could also face penalties, he responded, “it might happen.”
Meanwhile, oil prices jumped as Trump’s tariffs took effect, with West Texas Intermediate crude rising 2.1% to $74.03 per barrel, while Brent crude gained 1% to $76.46.
Trump also escalated tensions with South Africa, announcing plans to cut off all US assistance in response to its new land expropriation law. His comments caused the rand to plummet 1.9% to R19 per dollar, adding to the global market turmoil.
