U.S. Dollar Surges as Trump Unveils Broad New Tariffs – Currency Markets Brace
Following President Donald Trump's sweeping tariffs on 92 countries—up to 41% on Swiss and 35% on Canadian imports—the U.S. dollar index surged to its highest weekly level in nearly three years, weakening major global currencies and igniting concerns of a new currency imbalance.
Coinccino 
What’s Driving the Dollar Surge?
- Massive Tariff Hikes
Trump’s new executive orders set global floor tariffs between 10–41%, targeting countries such as Switzerland, Canada, India, and Brazil. These moves revived fears of escalating trade warfare. - Safe-Haven Flight
With markets reacting to trade threats, investors pulled into U.S. debt and liquid assets—boosting bond yields and strengthening the greenback. - Central Banks Hold Fast
The Federal Reserve kept rates steady at 4.25–4.50%, highlighting inflation risks, while the Bank of Japan showed reluctance to hike, weakening the yen. - Equity Markets Dip
Global equities fell—Europe’s STOXX 600 slid 1.3%, Asian indexes weighed down by trade uncertainty—contributing to capital flows into dollar-denominated assets.
Global Significance
| Region | Why It Matters |
|---|---|
| U.S. | Dollar strength may pressure exporters, but supports dollar-based assets and Treasury yields. |
| UAE | Strong dollar undervalues EM currencies tied to oil pricing—impacting local capital flows and trade. |
| India | Rupee depreciation increases import costs; inflation risk rises as key trading partners face higher duties. |
Coinccino Take
“Trump’s tariff spike isn’t just trade politics—it’s a dollar recalibration moment. Risk assets retreat, the dollar accelerates, and emerging markets feel the squeeze. For crypto markets and global investors, defensive positioning is now overdue.”
