Trump hints at new tariffs, stocks cautious

Asia-Pacific stocks show modest performance Stocks rose on Tuesday after President Donald Trump said he was considering new tariffs on Mexico and Canada.

The shares are In his inaugural address, Trump promised to introduce America's “Golden Age”.

He has promised an ambitious agenda – including trade reform, lower taxes and cutting government regulations – that has the potential to boost corporate profits.

But some economists warn the measures could also push up inflation, forcing the Fed to raise interest rates.

“We're looking at the 25 percent of Mexico and Canada because they allow a large number of people – Canada is also a very bad abuser – a large number of people to come in and allow fentanyl to come in,” Trump said at the Ellipse The office said.

In a presidential memo, he directed federal agencies to investigate why U.S. imports continue to exceed exports and to investigate potential unfair trade practices and alleged currency manipulation by other countries.

Trump also said that imposing new tariffs on China may depend on reaching an agreement on TikTok's future. He said if Beijing blocked such a deal “it would be a hostile act”.

But he said the United States was not yet ready to impose tariffs on all imports.

During his campaign, Trump promised to impose a 10% general tariff on China and said he would impose a 60% import tax on China.

he has It says the tariffs will make Americans richer, although critics say the costs will likely be passed on to consumers.

The president also said he would create an “Internal Revenue Service” to collect all duties, levies and revenue from foreign sources.

On Tuesday, Hong Kong's Hang Seng Index rose 1%, Japan's Nikkei 225 Index rose 0.1%, South Korea's Kospi Index rose 0.2%, and Australia's ASX 200 Index rose about 0.6%.

Meanwhile, the dollar regained some ground against some other major currencies, including the pound and the euro.

“Market sentiment took a hit during President Trump's signing of the executive order in the Oval Office,” said Tim Waterer, chief market analyst at financial services firm KCM Trade.

“Investors heard clearer details about Trump's tariff agenda, which hurt sentiment somewhat.”

Other analysts warned that Trump's return to the White House would reintroduce unpredictability into markets.

Charu Chanana, chief investment strategist at Saxo Investment Bank, said, “The first few hours of Trump's administration highlight that the policy environment will be dynamic again and markets should prepare for volatility.”

U.S. markets were closed Monday for Martin Luther King Jr. Day.