The U.S. dollar is notching its strongest one-day gain against the Japanese yen in nearly two months as traders react to President Donald Trump‘s sweeping new tariffs targeting multiple U.S. trading partners.
Starting Aug. 1, all goods imported from Japan and other Asian trading partners will face a 25% tariff, Trump announced Monday, citing persistent trade imbalances and unfair practices.
The move follows a 90-day pause for negotiations that fell short of providing a better outcome than the “Liberation Day” duties on April 2. And now, the fallout is landing hard.
The dollar surged past 146 yen, gaining 1.2% on the day—its sharpest move since May 12.
Markets Shake As White House Sends Tariff Letters To Trading Partners
In an official letter to Japanese Prime Minister Fumio Kishida, Trump stated that the new tariffs aim to address what he called “years of Japan’s tariff and non-tariff …