Impact of Trump's Economic Agenda on Trade

Donald Trump's return to the presidency marks a new phase in U.S. trade policies with an emphasis on a 'America First' agenda. The initial market reactions included a weakening of the U.S. dollar and rising values in trade partner currencies, suggesting initial optimism about less aggressive tariff policies. However, confusion arose when Trump later threatened significant tariffs on Mexico and Canada, which shifted market sentiments once again. This uncertainty around trade implications and the potential for retaliatory actions has left businesses and analysts on edge, highlighting the cautious nature of global markets in response to U.S. policy shifts.