Dollar Slides as Trump’s Modern Tariffs Fuel Global Market Uncertainty

New York, February 23, 2026 – The dollar and futures on the S&P 500 declined on Monday as renewed uncertainty surrounding US trade policy dampened sentiment and raised concerns about increased volatility in global markets. The moves signal investors are pricing in a higher risk premium for US assets following President Trump’s imposition of new tariffs.

Market Reaction

Contracts on the US benchmark S&P 500 were down 0.7%, while Nasdaq 100 futures slipped 0.9%. The Japanese yen, Swiss franc, and the euro led gains against the dollar as the Bloomberg Dollar Spot Index fell 0.2%. Bitcoin tumbled nearly 5% to fall below $65,000, while gold and silver prices climbed.

The yield on 10-year Treasuries rose two basis points to 4.08% on Friday, following mixed growth and inflation data, before the tariff ruling added further uncertainty. Cash trading of Treasuries in Asia was closed on Monday due to a holiday in Japan.

Trump’s New Tariffs

Hours after the Supreme Court struck down his sweeping reciprocal tariffs on Friday, President Trump announced a new 10% global levy and pledged to utilize other powers to maintain his signature tariff policies. He subsequently stated he would raise the new tariff to 15%, intensifying economic turbulence.

Asian Markets Benefit

Asian equity gauges climbed, with some rising as much as 1%, anticipating that the Supreme Court ruling would particularly benefit China and India, which had been heavily impacted by Trump’s previous tariffs. Morgan Stanley economists predict the weighted average tariff rate for Asia will decrease to 17% from 20%.

A gauge of Hong Kong-listed Chinese stocks was the top gainer among key Asian indexes on Monday, while mainland equity markets were closed for holidays.

Expert Analysis

“The broad dollar decline likely reflects the fresh injection of policy uncertainty the ruling entails,” strategists at Goldman Sachs Group Inc. Wrote in a note. “Policy uncertainty is a particularly important channel for the dollar as it can negatively influence investor and business activity. The dollar has depreciated in response to large tariff changes in both directions.”

Helen Zhu, chief investment officer at Nan Fung Trinity HK Ltd., commented on Bloomberg Television, “Asia and emerging markets are probably the biggest beneficiary of this temporary pullback in terms of tariffs.”

Garfield Reynolds, MLIV Asia Team Leader, stated, “Global trade uncertainty is back as an issue for investors and that’s bad news for US assets. The dollar’s slide this morning has the potential to extend, and the S&P 500’s underperformance relative to peers will become more entrenched as investors price in the impact.”

Other Market Movements

Oil prices fell as investors assessed the likelihood of a nuclear deal between the US and Iran. Equities in Taiwan also increased as trading resumed after a weeklong holiday.

Europe’s trade chief indicated plans to propose halting ratification of a deal struck with the US, while India postponed talks to finalize an interim trade deal. However, US officials asserted that Trump’s Supreme Court defeat wouldn’t invalidate existing deals with partners like China, the European Union, Japan, and South Korea.

Market Data (as of 12:56 p.m. Tokyo time)

• S&P 500 futures: -0.7%
• Australia’s S&P/ASX 200: -0.7%
• Hong Kong’s Hang Seng: +2.3%
• Euro Stoxx 50 futures: -0.4%
• Bloomberg Dollar Spot Index: -0.2%
• Euro: +0.3% to $1.1821
• Japanese yen: +0.5% to 154.30 per dollar
• Offshore yuan: +0.1% to 6.8892 per dollar
• Bitcoin: -3.9% to $64,980.19
• Ether: -4.4% to $1,864.74
• West Texas Intermediate crude: -1.1% to $65.73 a barrel
• Spot gold: +1.2% to $5,167.81 an ounce

This story was produced with the assistance of Bloomberg Automation.