On Wednesday, the US dollar rose slightly to 104.25 against a basket of major currencies, but the gains were limited as the market closely monitored the latest tariff policies to be announced by the Trump administration. The White House spokesperson stated that the US will immediately take "reciprocal" measures against all countries that impose tariffs on US goods.

The market will remain tight before the announcement, and investors will closely monitor any new news related to tariffs, which will directly affect the exchange rate trend. "- Carol Kong, currency strategist at the Commonwealth Bank of Australia

The Washington Post reported that the Trump administration is considering imposing a uniform tariff of 20% on almost all imported goods, rather than just targeting specific countries or products.

In theory, a comprehensive 20% tariff may benefit the US dollar, but the market is more concerned about whether tariffs will exacerbate the risk of stagflation in the US economy. "- Chris Weston, Research Director at Pepperstone

The recent weak economic data in the United States has intensified market concerns about an economic slowdown. The data released on Tuesday showed that the manufacturing industry in the United States shrank in March, while the factory price index surged to its highest level in nearly three years. Analysis suggests that companies hoard goods in advance to avoid tariffs, which drives up prices, while market uncertainty suppresses demand.

"Enterprises are adjusting their supply chain in advance to reduce import dependence, which has pushed up short-term prices, but market uncertainty is inhibiting overall demand, and manufacturers are eager for policy clarity." - Wells Fargo economist

Canadian Prime Minister Mark Carney had a phone call with Mexican President Hornbaum on Tuesday to discuss how to respond to the upcoming trade barriers imposed by the United States. The Canadian government has stated that it will firmly oppose "unreasonable" trade actions.