The dollar rallied and Asian stocks trimmed their opening gains after US President Donald Trump said he was considering enacting previously threatened tariffs on Canada and Mexico starting next month.
The US currency strengthened against all its Group-of-10 peers except the yen and Treasuries rose after Trump said he was planning to implement tariffs of as much as 25% on Mexico and Canada by Feb. 1.
Chinese markets were whipsawed after the president opted against announcing any new Chinese tariffs on his first day in office. US stock futures were little changed.
The jitters seen in Asian trading came after US stock futures had rallied Monday when Trump had appeared to be holding off from using executive orders to impose higher global tariffs.
The president plans to issue a broad memorandum that directs federal agencies to study existing trade policies and relationships with China, Canada and Mexico, the Wall Street Journal had reported.
