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02.04.202520:47:28UTC+00DXY Dips As Trump Imposes Tariffs

On Wednesday, the dollar index slipped below 103.9 as traders reacted to President Trump's recent tariff announcement. Dubbed "Liberation Day," Trump introduced extensive tariffs designed to redefine the United States' trade connections. These measures comprise a baseline tariff of 10% on all imports, with notably higher tariffs imposed on countries with trade surpluses with the U.S. Notable examples include China at 34%, the European Union at 20%, and Japan at 24%. Additionally, a new 25% tariff on all foreign-manufactured automobiles has been enacted with immediate effect. Trump advocates these tariffs as essential to rejuvenating domestic manufacturing and curbing trade deficits.

In economic news, the ADP report indicated a robust increase of 155,000 jobs in the private sector for March, exceeding expectations. Conversely, the JOLTS report showed a drop in job openings to 7.57 million, signaling a potential economic slowdown. Market participants are now turning their attention to the upcoming nonfarm payrolls data on Friday for insights into the Federal Reserve's forthcoming policy decisions.

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