Dollar Strengthens as Trump Considers China Tariffs

The US dollar gained against major counterparts on Wednesday following President Donald Trump's announcement that he is considering a 10% tariff on Chinese goods.

The New Zealand and Australian dollars experienced the most significant losses against the greenback, declining between 0.2% and 0.4%, after Trump's comments on potential duties in response to fentanyl imports from China. The Chinese yuan also dipped marginally.

The dollar's movement on Tuesday was volatile, reacting to Trump's statements on possible tariffs on Mexico and Canada, which led to currency declines in those countries.

"It's an example of the Trump administration's deliberate policy of uncertainty," stated Rodrigo Catril, strategist at National Australia Bank Ltd. in Sydney. "Keeping the market and trading partners in the dark contributes to unpredictability and boosts the dollar's safe-haven appeal."