Global Markets Rattle as Trump Unveils Sweeping New Tariffs

The U.S. dollar fell sharply on Thursday after President Donald Trump announced sweeping tariffs on imports, sparking a global market sell-off. The move, targeting around 60 countries, includes a 10% baseline tariff on all imports, with steeper duties for key trading partners. These new measures will take effect on April 9.

Markets reacted swiftly, shifting into risk-off mode. Investors flocked to safe-haven assets, pushing the Japanese yen up nearly 1% to 147.99 per dollar and strengthening the Swiss franc to 0.8787. The Australian dollar dropped 0.5% to $0.6268, and the New Zealand dollar fell 0.26% to $0.5730. China’s offshore yuan hit a one-month low, and the Mexican peso weakened to 20.2520 per dollar.

Trump’s latest move escalates the trade war he reignited upon returning to the White House, after previously targeting aluminum, steel, autos, and all Chinese goods. Analysts fear these aggressive measures could further slow global economic growth.

Kyle Rodda of Capital.com said markets are now pricing in weaker global growth, with uncertainty around whether trading partners can renegotiate tariffs or expect further restrictions. Rodrigo Catril of National Australia Bank noted the euro’s resilience—up 0.43% to $1.0875—comes from Europe’s calm, non-retaliatory stance. The British pound also gained 0.28%, reaching $1.3047.

Canada and Mexico, already subject to 25% tariffs, are exempt from the new measures. Meanwhile, investor sentiment shifted toward expectations of at least three U.S. Federal Reserve rate cuts this year, with a fourth becoming more likely.

As fears of a full-blown trade war grow, traders are bracing for heightened volatility and further safe-haven demand.