Yahoo Finance

(Bloomberg) -- The dollar rallied and Asian stocks briefly erased opening gains after US President Donald Trump said he was considering enacting previously threatened tariffs on Canada and Mexico starting next month.

Most Read from Bloomberg

• How Sanctuary Cities Are Preparing for Another Showdown With Trump

• Texas HOA Charged With Discrimination for Banning Section 8 Renters

• What LA’s Fires Mean for the City’s Housing Shortage

• NYC Commuters Get New Way to Dodge Traffic: $95 Helicopter Rides

• Deadly Landslide of Garbage Displays Uganda's Missed Opportunity

The greenback strengthened against almost all its Group-of-10 peers after Trump said he was planning to enact the tariffs of as much as 25% on Mexico and Canada by Feb. 1. Shares in mainland China edged lower even after the president held off unveiling any new China-specific tariffs. Treasuries rose.

“The tariff respite was short-lived, as expected, with the latest headline signaling that tariffs have been delayed but not averted,” said Charu Chanana, chief investment strategist at Saxo Markets. “However, it seems like Canada and Mexico are in the focus but negotiation hopes are kept alive for China, suggesting China markets may still be supported.”

Bloomberg’s dollar gauge rose as much as 0.7%, while the Canadian dollar slid 0.9& and the Mexican peso slipped 1.1%. US Treasury 10-year yields declined 7 basis points to 4.55%.

Investors had been on tenterhooks for the first executive orders to stem from the White House after Trump vowed to quickly implement his “America First” agenda. Since his November election victory, everything from the Australian dollar to European equities have been whipsawed on concern widespread tariffs would add to global trade frictions, while the dollar surged as the Federal Reserve turned more cautious on easing policy.

“We’re thinking in terms of 25% on Mexico and Canada, because they’re allowing vast numbers of people,” into the country, Trump said in response to questions from reporters, in comments made at the Oval Office. “I think we’ll do it February 1.”

Key events this week:

• UK jobless claims, unemployment, Tuesday

• Canada CPI, Tuesday

• ECB President Christine Lagarde and other officials speak at Davos, Wednesday

• South Korea GDP, Thursday

• Eurozone consumer confidence, Thursday

• Trump will join the World Economic Forum for an online “dialogue”

• Japan CPI, rate decision, Friday

• India, euro area, UK PMIs, Friday

• ECB President Christine Lagarde and BlackRock CEO Larry Fink speak at Davos, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures were little changed as of 10:52 a.m. Tokyo time

• Nikkei 225 futures (OSE) were little changed

• Japan’s Topix fell 0.1%

• Australia’s S&P/ASX 200 rose 0.4%

• Hong Kong’s Hang Seng rose 0.1%

• The Shanghai Composite fell 0.4%

• Euro Stoxx 50 futures fell 0.5%