The US dollar has taken a massive hit amid Trump’s trade war tensions, as the US president continues to levy new tariffs on global nations. This new phenomenon has knocked the USD out cold, with the DXY index trading at 101, one of its lowest levels in real time.
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Trump’s Tariff Policies Batter the Markets
President Donald Trump announced a fresh spree of reciprocal tariffs on April 2nd, 2025. Trump shared a comprehensive list of tariffs that are set to be imposed globally, murmurs of which have been gaining momentum for quite a while. The US president had earlier mentioned his plans of levying such tariffs on nations on April 2nd on X, referring to the day as “World Liberation Day,” or a day when “America is liberated” in its essence.
Trump has imposed strict tariffs on multiple nations, with India and China receiving nearly 26% to 34% tariffs on imports. At the same time, Vietnam has been levied with a 46% tariff on imports, while Japan and Taiwan have been imposed with 24% and 32% tariffs, respectively.
JUST IN: 🇺🇸 President Trump's reciprocal tariffs:
— Watcher.Guru (@WatcherGuru) April 2, 2025
• Chile 10%
• India 26%
• Israel 17%
• Brazil 10%
• China 34%
• Japan 24%
• Turkey 10%
• Taiwan 32%
• Vietnam 46%
• Pakistan 29%
• Thailand 36%
• Australia 10%
• Malaysia 24%
• Colombia 10%
• Sri Lanka 44%
•…
The aforementioned development took the market by storm, which plummeted to new lows. The Dow Jones Industrial Average crashed 1679 points (3.98%), followed by the S&P, which tanked 274.45 points in the process.
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Dollar Plunges As Trade War Tensions Surface
The US dollar has taken a bad hit amid the latest tariff development. Donald Trump’s fierce tariff import phenomenon has impacted the USD the most, with the DXY index plunging to a new low of 101.50. The greenback has been facing stiff competition from “non-traditional reserve currencies” such as the Japanese yen and the Canadian dollar, which have gained significantly as the US dollar continues to suffer due to the latest market happenings. This phenomenon is also influencing investor sentiment, which seems to have been pivoting towards other currencies to seek refuge in.
“According to the IMF data, the top nontraditional reserve currencies are the Japanese yen (5.8%). British pound (4.7%), Canadian dollar (2.8%), Chinese renminbi (2.2%), Australian dollar (2.1%), and Swiss franc (0.2%). All other currencies total 4.6% of global foreign currency reserves.” The Kitco article stated.
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