At the G20 meeting in Buenos Aires on November 30, Trump and Chinese President Xi Jinping are expected to discuss contentious trade matters that would have an impact on trade-sensitive currencies such as the Australian and New Zealand dollars.
The rate increase, from 10pc to 25pc, is due to be implemented on Jan 1.
Trump is hopeful for a breakthrough with Xi but is ready to impose more tariffs if the upcoming talks don't yield progress, Larry Kudlow, Trump's top economic adviser, told reporters Tuesday during a briefing ahead of the Group of 20 meeting in Argentina.
"Donald Trump's renewed tariff threats against China have magnetized investors to the U.S. Dollar", Lukman Otunuga, a research analyst at broker FXTM, said in a note.
"Although the current economic situation in the U.S.is good, people can not rule out the possibility of another-I don't want to use the word "crisis"-a similar situation as what happened 10 years ago", he warned".
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Trade-related worries lifted the greenback and the dollar index, which tracks the USA dollar versus the euro, yen, sterling and three other currencies, was up 0.21 per cent at 97.281. "And if it's not made, we will be taking in billions and billions of dollars", said Trump. Ultimately, the US President advised companies willing to avoid tariffs should build factories in the United States.
A tentative rebound in global share markets will be tested in Asia on Tuesday after U.S. President Donald Trump quashed hopes he might strike a truce on trade with China, dampening risk appetite across the region.
US stock options traders are braced for a surge in volatility around the G20 summit.
Additionally, Trump said that he expects to boost tariffs on $200 billion of Chinese products to 25 percent in January.
In September, Washington slapped 10 percent duties on $200bn in imports from China in an effort to get Beijing to reverse alleged unfair trade practices, such as the forced transfer of intellectual property and massive state intervention in markets.
However, in a call with analysts, Barra admitted that Trump's tariffs on imported steel and aluminium were among the "headwinds" GM faced and had cost the top USA automaker US$1 billion.