Donald Trump’s intention to introduce new tariffs on China, Canada, and Mexico starting on his first day in office is expected to spark significant turbulence in the currency markets, with experts warning that the impact on exchange rates could be far-reaching. 

He revealed plans on Monday to impose a 25% tariff on imports from Canada and Mexico, a move that might violate an existing trade agreement, as well as an additional 10% levy on Chinese goods. These announcements quickly triggered sharp movements in the markets, with the U.S. dollar climbing against both the Mexican peso and the Canadian dollar.

Goldman Sachs advised investors to prepare for increased volatility in the foreign exchange markets, suggesting that such fluctuations could persist for an extended period due to the likelihood of tariffs remaining a key aspect of Trump’s strategy.

Finsum: Although Trump’s recent tariff announcements were lower than anticipated they could very well end up much different than the current announcement.