SINGAPORE (Reuters) – U.S. President-elect Donald Trump stated on Monday that on his first day in workplace he would impose a 25% tariff on all merchandise from Mexico and Canada, and a further 10% tariff on items from China.
The announcement sparked a greenback rally. It rose 1% in opposition to the Canadian greenback and a couple of% in opposition to the Mexican peso, whereas U.S. inventory futures and share markets in Asia fell. [FRX/][MKTS/GLOB]
KHOON GOH, HEAD OF ASIA RESEARCH, ANZ, SINGAPORE
“It looks like he’s not going to waste much time… so the question now is – on day 1 is he actually going to follow through with it and will the tariffs hit on day 1?
“The opposite attention-grabbing factor is he is laid out his causes for the tariffs (regarding the motion of individuals and medicines) so it appears like these tariffs are conditional on these. While that is the opening salvo, perhaps that is only the start of the offers he is well-known for.”
TONY SYCAMORE, MARKET ANALYST, IG MARKETS, SYDNEY
“I am simply making an attempt to reconcile the way it works with the appointment of Bessent. Individuals have been anticipating him to be a extra average voice. Possibly it is also a response to hey, look, everybody thought that Bessent was gonna average a few of these extra excessive commerce insurance policies … however Trump’s not gonna be moderated by anybody.
“He has said up to 60% on Chinese goods.. so if we’re only talking about an additional 10% tariff on Chinese goods on top of the existing levies, that’s a lot less than what he had previously indicated. .. so it may be actually less than the worst case scenario we were looking at.”
MATT SIMPSON, SENIOR MARKET ANALYST, CITY INDEX, BRISBANE
“It’s almost as if Trump wants to remind markets who is in control, after nominating Scott Bessent as Treasury Sec – a man markets expected to cool Trump’s potency. But with the Canadian dollar rising against the Mexican peso, markets are assuming this will hit Mexico the hardest.”
