Trump’s aggressive trade policies have shaken global markets and triggered currency volatility. Rising tariffs, inflation risks, and political pressure on the Fed are weakening the US dollar. Moreover, the Japanese yen is gaining strength as a safe haven. As a result, USD/JPY trades at a critical support level near 140, where a breakdown could signal a long-term decline.
by Muhammad Umair
FX Empire
How Trump’s Trade Policy Is Shaking Global Markets
China’s Response and Global Market Impact
Trump has raised tariffs on Chinese goods to 145% and introduced “reciprocal tariffs” on multiple countries. These aggressive actions disrupted trade flows and added pressure on global supply chains. As a result, China’s Ministry of Commerce vowed strong retaliation and warned that any country siding with the US would face countermeasures. This geopolitical threat has created uncertainty across Asia-Pacific markets, with Japan’s Nikkei 225 dropping to around 26,500 on Monday.