Global Trade War Heats Up as Tariff Tensions Rise

The dollar remains uncertain as investors brace for new U.S. tariffs under President Trump, intensifying global trade tensions. Market volatility looms amid unclear policy impacts, while key currencies like the euro and yen display mixed performance. Economic data and central bank insights are eagerly awaited for further guidance.

On Tuesday, the dollar maintained a fragile balance following a challenging quarter, as global investors prepared for a potential new wave of tariffs from U.S. President Donald Trump. These tariffs are anticipated to compound the already strained global trade relations, nurturing concerns of a looming U.S. recession.

Traders remained cautious, awaiting clearer directions on Trump's trade policy moves set to be announced on Wednesday. With existing tariffs on metals and Chinese goods, the absence of clarity about upcoming targets kept the market on edge, as expressed by Ameriprise Financial's chief strategist, Anthony Saglimbene.

Additionally, key currencies such as the euro and yen experienced fluctuation amid these trade tensions, while important economic indicators and central bank statements are on traders' radar, offering potential insight into future U.S. interest rate trajectories.

(With inputs from agencies.)