USD strengthens on Trump tariff plans, impacting major forex pairs

The US Dollar has gained 0.4% across major pairs following Trump's announcement on Truth Social about expanded tariff plans, with USD/JPY rising to 154.80 and EUR/USD falling to 1.0520. Trump claims tariffs will generate 'hundreds of billions of dollars' for the US economy, suggesting buyers are already stockpiling inventory to avoid future tariff payments. This protectionist rhetoric has bolstered dollar sentiment as traders anticipate potential inflationary pressures and increased Treasury revenues. The announcement particularly impacts trade-sensitive currencies, with AUD/USD dropping 0.6% to 0.6480 and USD/CAD advancing to 1.3920. Technical indicators show USD index approaching resistance at 106.50, while support holds firm at 105.80. Traders should monitor upcoming US economic data releases for confirmation of dollar strength, as sustained tariff implementation could reshape global trade flows and currency valuations in the medium term.