US Stocks Market Sees Dramatic Turnaround as President Trump Threatens Mexico, Canada Tariffs

In a shocking turnaround, the US dollar rebounded by 0.7% in Asian markets yesterday, amidst reports that President Donald Trump may impose tariffs of up to 25% on Mexico and Canada in February. The surge was seen as a reaction to the surprise news headlines about fresh trade restrictions targeting the two key economic partners.

In New York markets earlier in the day, the dollar plummeted, leading to its steepest drop in 14 months. However, a rapid reversal later led to an upswing, pushing the Bloomberg dollar gauge back towards positive territory.

The sharp fluctuations in currency values were observed against the Canadian dollar and Mexican peso, which both witnessed a significant decline of around 1% against the US currency following President Trump's threat. Investors sought refuge in safe-haven assets amid uncertainty over global trade tensions.

As the market reaction is still unfolding, analysts say that Washington's intentions on tariffs remain unclear, casting a cloud of uncertainty over economic prospects for the time being.