The U.S. dollar rebounded against safe-haven currencies on Wednesday after President Donald Trump announced a 90-day pause on most new tariffs, while sharply raising duties on Chinese imports to 125%.
| Photo Credit:
JOSE LUIS GONZALEZ/Reuters
The U.S. dollar rebounded against safe-haven currencies including the yen and Swiss franc after President Donald Trump announced a 90-day pause on many new tariffs on trading partners but hiked duties on Chinese goods, escalating a confrontation.
Trump said on Wednesday he had authorized a 90-day pause in “reciprocal” 10% tariffs but was also raising the tariff rate for China to 125%, effective immediately.
The dollar had been weakening against its peers earlier in the session after Trump’s “reciprocal” tariffs on dozens of countries took effect on Wednesday, including massive 104% duties on Chinese goods.
China had swiftly retaliated with an 84% tariff on U.S. goods from Thursday, while EU countries also approved on Wednesday the bloc’s first countermeasures against U.S. tariffs.
“After markets successfully put the administration on notice, the announced “pause” seems likely to be extended beyond ninety days,” Karl Schamotta, chief market strategist at Corpay wrote in an investor note.
On Wall Street, all three main indexes surged following the Trump announcement, with the Nasdaq jumping 7.7%, benchmark S&P 500 gaining 6%, and the Dow rising 5%.
The greenback was up 0.3% against the safe-haven yen to 146.765, reversing losses in early session trade. It gained 0.45% versus the Swiss franc to 0.8500 franc.
Published on April 9, 2025
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