U.S President Donald Trump Archives -

Trump Confirms Plan to Dismantle USAID: On Tuesday,
U.S. President Donald Trump reaffirmed his intention to dismantle the United States Agency for International Development (USAID),
a move reflecting his administration’s commitment to reducing government spending in alignment with the “America First” policy.

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Trump

New Zealand’s Labor Market
France’s Industrial Production

Trump Confirms Plan to “Dismantle” USAID

On Tuesday, U.S. President Donald Trump reaffirmed his intention to dismantle
the United States Agency for International Development (USAID),
a move reflecting his administration’s commitment to reducing government spending in alignment with the “America First” policy.

The agency is experiencing significant disruptions as the administration plans to merge it
into the State Department as part of a broader restructuring effort to downsize
its workforce and redirect its budget to Trump’s foreign policy priorities.

Trump also praised Elon Musk, who is leading these efforts,
He stated that he was doing a “great job” and justified the decision
by claiming there was “a lot of fraud” within the agency.

New Zealand’s Labor Market Shows Mixed Performance in Q4 2024

On Tuesday evening, Statistics New Zealand released labor market data for the fourth quarter of 2024,
which showed mixed results compared to market expectations.

According to the report, employment in New Zealand contracted by 0.1% in Q4,
a better-than-expected outcome than forecasts of a 0.2% decline.
This follows a 0.6% employment contraction in Q3, revised from an initial estimate of 0.5%.

Meanwhile, the unemployment rate rose to 5.1%, the highest since Q3 2020.
While this reading matched market expectations, it was worse than the 4.8% recorded in Q3.

France’s Industrial Production Contracts More Than Expected in December

Industrial production in France declined by 0.4% in December,
according to a report published by the National Institute of Statistics and Economic Studies (INSEE) on Wednesday morning.
This was worse than market expectations, which had projected only a 0.1% decline.
Additionally, the data showed a weaker performance than November,
which saw a 0.1% increase, revised down from the initial 0.2% estimate.

These figures highlight the French industrial sector’s ongoing challenges amid mounting economic pressures.

Trump Confirms Plan to Dismantle USAID

Dollar Rises as Asian Markets Dip on Trump’s Tariff Plans:
The US dollar posted notable gains against most major currencies except for the Japanese yen.
At the same time, Asian stocks pared their early gains after US President Donald Trump announced
plans to impose new tariffs on Canada and Mexico starting next month.
This move aligns with a promise made during his election campaign.

US Treasury yields rose alongside Trump’s remarks
about imposing tariffs of up to 25% on Mexico and Canada by February 1.
Meanwhile, Chinese markets experienced sharp fluctuations as Trump decided
not to impose new tariffs on China during the initial days of his second term.
On the other hand, US stock futures remained primarily unchanged.

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Expected Trade Escalation

Currency and Market Performance

Trump Revisits Trade Policies

Policy Impacts on Commodities and Cryptocurrencies

Conclusion

Expected Trade Escalation Amid Market Caution

These developments in Asian markets followed gains in US stock futures on Monday,
Trump hints that new tariffs will not be imposed immediately through executive orders.
According to a “Wall Street Journal” report,
Trump plans to issue a comprehensive memorandum directing federal agencies
to review current trade policies and the US’s relationships with China, Canada, and Mexico.

Sharatchanana, Chief Investment Strategist at Saxo Markets, commented:
“As expected, the calm surrounding tariffs did not last long.
The tariffs may have been postponed but not canceled, increasing the focus on Canada and Mexico,
while negotiations with China remain possible.”

Currency and Market Performance

The Canadian and Mexican currencies fell 1.4% following Trump’s tariff threats,
while the Bloomberg Dollar Index rose 0.7%, recovering from a 1.1% decline on Monday.
Additionally, US 10-year Treasury yields dropped by 8 basis points to settle at 4.54%.

Investors are cautiously awaiting the first executive orders from the White House,
especially after Trump pledged to expedite his “America First” agenda.
Since his victory in November’s election, global markets have faced significant disruptions,
including impacts on the Australian dollar and European equities,
amid fears that broad tariffs could escalate global trade tensions.

At the same time, the dollar continued to gain momentum,
bolstered by the Federal Reserve’s more cautious stance on easing monetary policies.

Trump Revisits Trade Policies

Speaking from the Oval Office, Trump stated:
“We are considering imposing 25% tariffs on Canada and Mexico because they allow many people to enter the United States.
We should implement this by February 1.

Despite these remarks, Trump refrained from announcing new tariffs targeting China,
directing his administration to review global trade practices and assess China’s compliance with agreements made during his first term.

John Rong Yip, a market analyst at IG Asia Pte, said:
“With a 25% rate as the starting point, markets will undoubtedly worry about the possibility of higher tariffs on China,
which could be Trump’s next trade target.”

Policy Impacts on Commodities and Cryptocurrencies

Oil prices declined as investors digested Trump’s pledges to boost domestic production.
In the cryptocurrency market, Bitcoin extended its losses for the fourth consecutive day amid heightened global caution.

Conclusion

Trump’s trade policies bring markets back into uncertainty and tension.
With new tariffs and increased volatility in commodity and currency markets,
investors remain on edge, awaiting further announcements that could significantly impact the global economy.

Dollar Rises as Asian Markets Dip on Trump’s Tariff Plans