Dollar Spikes As Trump Clarifies He Is Not Backing Away From Tariff Plan

Yesterday, during his first cabeinet meeting, President Trump discussed various aspects of his reciprocal/non-reciprocal tariff plans… prompting the stock market to decline and general chaos in FX markets. His words were interpreted as pushing back the start of tariffs on Mexico and Canada by a month (but that ‘dovishness’ was offset by comments on EU tariffs).

This morning, the president has issued a ‘clarifying’ statement on Truth Social.

Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels. 

A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China. 

More than 100,000 people died last year due to the distribution of these dangerous and highly addictive POISONS. 

Millions of people have died over the last two decades. The families of the victims are devastated and, in many instances, virtually destroyed. 

We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled.

China will likewise be charged an additional 10% Tariff on that date. 

The April Second Reciprocal Tariff date will remain in full force and effect. 

Thank you for your attention to this matter. 

GOD BLESS AMERICA!

Tl;dr: We are going full tariff-tard!

Trump mistook the start date on canada, mexico tariffs with the reciprocal tariff launch date and algos immediately took it as a dovish signal that he is pushing back on tariffs.

Instead Trump was just confused https://t.co/E7Q3AFTXtU

— zerohedge (@zerohedge) February 27, 2025

The result is the dollar is spiking…

as CAD, MXN, EUR, and CNH all tumble.

Traders anxiously await the next post from the president.