President Trump announced a raft of tariffs last weekend with levies of 25% on Mexico, 25% on Canadian non-energy goods, 10% on Canadian energy and a 10% increase to tariffs on China. The US dollar considerably strengthened at market opening for Asia, with the Euro/US Dollar hitting a low of under 1.02 and the Pound/US Dollar dropping to under 1.23. MXN, CAD and Chinese Renminbi also weakened considerably, but the FX market moves then settled.
When asked whether tariffs on the EU would follow, Trump stated, "It will definitely happen". In comparison, Trump has been more muted on trade terms with the UK and has even spoken positively about Prime Minister Starmer’s leadership. This boosted the pound against most other currencies.
For more information on the current FX movements and for help on how to plan with these changes, we offer all members a Free Foreign Exchange Healthcheck with our partner Moneycorp. Get in touch on 0161 393 4314 or international@gmchamber.co.uk to discuss with one of the team.
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