Financial markets swayed after Donald Trump took office and did not immediately impose new trade tariffs in his executive orders, but later signalled punitive tariffs on Mexico and Canada.
The US president told reporters in the White House’s Oval Office he was thinking about introducing 25% US tariffs on imports from Mexico and Canada as soon as 1 February.
The US dollar, which had initially fallen in the hours after Trump took office, reversed course after the comments to hit five-year highs against the Canadian dollar, and rose by 1% against the Mexican peso.
Financial markets, which rallied in the aftermath of Trump’s election victory in November, were largely calm in reaction to his return to the White House. US markets were closed for Martin Luther King Jr Day on Monday, so Asian markets were the first to respond. Japan’s Nikkei index swung between losses and gains and ended the day 0.3% higher.
Other Asian markets also made…
