Trump Tariffs Revive the USD, Nikkei Ignores It After A Dip
US President Donald Trump has announced that tariffs on imported metals, semiconductors, and pharmaceuticals will soon take effect, sending the USD jumping higher.
Markets were hoping for no tariffs after the delay, but this signals a significant escalation in the administration’s trade policy. These measures are expected to target key sectors of global supply chains, potentially reshaping trade dynamics and impacting both domestic and international markets. EUR/USD dived 60 pip lower, so no chance of a break above 1.05 anymore. Meanwhile USD/JPY has jumped almost 1 cent higher, climbing above 155 again.
EUR/USD Chart H4 – Buyers Couldn’t Keep the Price Above 1.05
In his remarks, Trump also commented on the recent advancements in artificial intelligence made by DeepSeek, describing the developments as “a positive.” He praised the innovation, noting that it is encouraging to see Chinese companies advancing AI technologies with faster and more efficient methods. While the statement reflects optimism about the broader progress in AI, it also underscores the growing competition in the tech sector between the US and China.
Meanwhile, the US Senate has confirmed Scott Bessent as Treasury Secretary following a majority vote. Bessent’s appointment is already drawing attention, particularly regarding his economic policy stance. According to a report by the Financial Times, Bessent is pushing for a phased plan to increase universal tariffs across the board. This proposal aims to address trade imbalances and protect domestic industries but may also spark concerns about inflation and potential retaliation from trading partners. As these developments unfold, they highlight the administration’s focus on reshaping trade policies and the broader economic framework, with implications that could reverberate across multiple industries and global markets.
Donald Trump on Social Media Talking About Tariffs
- New Universal Tariffs:
- Trump proposed new tariffs on all imports to the U.S., starting at an initial rate of 2.5%.
- These tariffs would increase incrementally each month by the same percentage.
- The gradual increase is intended to give businesses time to adapt and adjust to the changing trade landscape.
- The maximum rate for these tariffs could reach as high as 20%, depending on economic and trade conditions.
- TikTok Bidding:
- Trump expressed confidence that there will be significant interest in acquiring TikTok, with many bidders expected to participate.
- He reiterated that China should have no involvement with the platform and stressed the need to safeguard national security.
- Energy Infrastructure Development:
- Promised faster approval processes for constructing new electricity generation plants.
- Highlighted the importance of modernizing and expanding the U.S. energy sector to ensure self-sufficiency and competitiveness.
- Corporate Tax Cuts:
- Announced plans to reduce corporate taxes further, aiming to boost investment and support American businesses.
- This policy aligns with the broader goal of fostering economic growth and maintaining the U.S. as a favorable environment for corporations.
EUR/USD Live Chart
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