Dollar Dances with Tariffs: Trade Tensions Tighten Global Markets
The dollar hovered near a two-week high against the yen as President Donald Trump pledged more trade proclamations, including tariffs. Despite recent gains, the dollar index is still down 6% since April, but the greenback has advanced amid these tensions. Japan remains a key focus as a deal remains elusive.

The dollar edged close to a two-week high against the yen as President Donald Trump threatened further trade tariffs, including a potential 50% tariff on copper and levies on semiconductors and pharmaceuticals. Markets brace for new announcements affecting at least seven countries, yet details remain scarce.
Despite recent upward momentum, the dollar index has fallen more than 6% since April when Trump unveiled his 'Liberation Day' tariffs. Traders are cautioning that Trump's tactics may be strategic brinkmanship, pressing for quicker trade deals. Japan, one of the notable U.S. trading partners, faces mounting challenges as it struggles to secure an agreement.
Speculation grows surrounding Japan's upcoming elections, with opposition parties likely pushing for further fiscal measures. As talks remain at a standstill, Japanese government bond yields have surged. Treasury Secretary Scott Bessent's upcoming visit to Japan could potentially pave the way for resumed discussions.
(With inputs from agencies.)
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