Following the U.S. presidential election on January 20, 2025, President Donald Trump announced plans to impose tariffs on imported computer chips, pharmaceuticals, and steel. This initiative aims to encourage domestic production. The announcement coincided with a significant sell-off in technology stocks, particularly affecting Nvidia, which saw a 17% drop in shares, equating to a loss of approximately $593 billion in market value.
On January 28, 2025, the dollar rose 0.7% against the yen, reaching 155.70. This increase followed the yen's strengthening to 153.715, its highest level since mid-December. Market analysts noted that the volatility in the USD/JPY currency pair was influenced more by developments in artificial intelligence than by the Bank of Japan's recent hawkish stance.
Trump's tariff proposals include a potential 25% duty on imports from Canada and Mexico, set to take effect on February 1, 2025. Additionally, he has threatened tariffs on the European Union and China. The upcoming Federal Reserve meeting, starting January 30, 2025, is anticipated to maintain current interest rates, with market participants closely monitoring Trump's economic policies and their implications.
In the AI sector, the release of China's DeepSeek model has raised concerns in Silicon Valley. The chatbot surged to become the most downloaded app in the U.S., raising questions about the competitiveness of U.S. tech firms. Trump described this development as a wake-up call, emphasizing the need for American industries to focus on competitive strategies.
As the situation evolves, the implications of Trump's tariffs and the rise of competitive AI technologies will be closely observed by investors and policymakers alike.