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Dollar strengthens as Trump proposes larger tariffs, pressuring global markets
The US dollar surged as President Trump proposed larger tariffs on imports, rattling global markets. Asian stocks slid, led by tech losses, while copper prices dipped on trade war fears.
The US dollar strengthened after President Donald Trump called for “much bigger” universal tariffs, surpassing the 2.5% proposed by Treasury Secretary Scott Bessent. Trump hinted at imposing levies on foreign-made semiconductors, pharmaceuticals, and metals to boost domestic production.
Asian markets fell, with the MSCI Asia Pacific Index dropping 0.6%, led by losses in Japanese tech stocks like Advantest Corp. (-11%) and SoftBank Group (-6%). This followed a US market selloff sparked by concerns over high valuations in the AI sector, triggered by Chinese startup DeepSeek’s AI model.
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The Bloomberg Dollar Spot Index rose 0.4%, while the Australian and New Zealand dollars slid 0.5% or more. Treasuries saw yields inch up, with the 10-year climbing to 4.55%.
Copper prices dipped amid Trump’s tariff threats on metals, while Hong Kong stocks saw mixed results. Shares of China Vanke rose 2.1% after government support despite reporting a record loss.
Global traders are now watching Big Tech earnings from Microsoft and Apple, with the group’s profit growth expected to slow to its weakest in two years.
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Editorial Note
This article aggregates publicly available market and broker updates from the source CMS. Verify time-sensitive data directly with official sources before making decisions.
Last update: Jan 28, 2025