Dollar Gains as Trump Vows ‘Much Bigger’ Tariffs
The dollar advanced after US President Donald Trump said he wanted “much bigger” universal tariffs. Most Asian shares fell as concern over high valuations in the artificial-intelligence sector stretched into a second day.
The US currency strengthened against all its Group-of-10 peers as the president said he wanted far larger across-the-board tariffs than the 2.5% said to be favored by new Treasury Secretary Scott Bessent, adding to signals he is preparing widespread levies to boost the US supply chain. Trump also said he would soon put tariffs on foreign-produced semiconductors, pharmaceuticals and some metals to compel producers to manufacture in the country.
The Bloomberg Dollar Spot Index climbed 0.4% following Trump’s latest tariff comments. The risk-sensitive Australian and New Zealand dollars both fell at least 0.5%, while the Thai baht tumbled 0.7%, leading losses in emerging Asia. China’s offshore yuan also weakened.
“Bessent talking about universal tariffs across the board and while gradual they could go up all the way to 20% — that is a big deal,” said Rodrigo Catril, strategist at National Australia Bank Ltd. in Sydney. “The president has a protectionist agenda, not good for global growth and supportive for the dollar as the preeminent safe haven.”
Source : Bloomberg
