Trump's Trade Memo Sparks Market Movements

President-elect Donald Trump plans to issue a trade memo focusing on U.S. trade relations with China, Canada, and Mexico. Instead of imposing tariffs on his first day, Trump will have agencies investigate trade deficits and foreign trade policies, affecting global markets as the dollar falls and stocks rise.

In an unexpected move, President-elect Donald Trump intends to issue a trade memo that examines U.S. trade relationships with China, Canada, and Mexico. This decision comes as an alternative to imposing new tariffs on his first day in office, a move he had hinted at during his campaign.

The dollar's value slumped significantly against major currencies such as the euro and the Chinese yuan, as global stock markets experienced a rally. The memo will direct federal agencies to scrutinize these countries' trade practices and compliance with existing trade agreements, without announcing new tariffs.

The forthcoming policy indicates a strategic approach that involves utilizing trade laws like Section 232 and Section 301 to conduct thorough investigations, rather than initiating immediate economic actions. This signals a shift in Trump's trade policy approach as he prepares to take office.

(With inputs from agencies.)