The dollar index rose toward 109 on Tuesday as the 10% US tariffs on imports from China took effect, marking the start of a trade war that could have significant economic repercussions. China immediately retaliated by imposing its own tariffs on selected US exports, including oil, gas, coal, cars, and farm equipment, effective February 10. Markets are now weighing the potential impacts of these tariffs on growth and inflation, further clouding the outlook for Federal Reserve monetary policy. Meanwhile, President Trump agreed late on Monday to "immediately pause" planned tariffs on Mexico...
WTI crude oil futures fell below $72 per barrel on Tuesday after China announced a package of tariffs on a range of U.S. products in response to President Donald Trump's tariffs, heightening concerns about a potential trade war between the world's two largest economies. China said it will impose tariffs of 15% on coal and LNG imports from the U.S. and 10% on crude oil, farm equipment, and certain cars, effective February 10. This move came after the passing of a deadline that imposed a 10% U.S. tariff on all Chinese goods. Trump had earlier delayed planned levies on Canada and Mexico by a...
Gold (XAU/USD) prices attracted some sellers following an intraday rally that re-approached all-time highs and traded in neutral territory heading into the European session on Tuesday (February 4). However, the declines remained muted amid concerns about the potential economic impact of US President Donald Trump's trade tariffs, which may continue to underpin the safe-haven bullion. Moreover, expectations that Trump's protectionist policies will lead to higher US inflation could further benefit the precious metal's status as a hedge against rising prices. Meanwhile, Trump's decision to...
The Australian dollar (AUD) held firm after China's retaliation after new US tariffs of 10% on all imports from China came into effect on Tuesday (4/2). China's Ministry of Commerce announced that it would impose 15% tariffs on US coal and liquefied natural gas (LNG) imports, along with additional 10% tariffs on crude oil, farm equipment and certain cars. Additionally, to "safeguard national security interests," China imposed export controls on tungsten, tellurium, ruthenium, molybdenum and related products. The AUD/USD pair faces challenges as market volatility remains a concern as...
Silver traded around $31.50 an ounce on Tuesday, holding near its highest level since early December as the escalating trade war between the U.S. and China boosted demand for the safe-haven asset. China announced retaliatory tariffs after President Donald Trump's 10% tariffs on all Chinese imports went into effect. Earlier, Trump agreed to delay imposing 25% tariffs on Canada and Mexico for a month after the countries agreed to take tougher action on migration and drug trafficking. Meanwhile, strong manufacturing data from the ISM indicated some long-awaited pickup in U.S. factory activity,...