Pound rises against the dollar after Trump does not announce tariffs

Sterling rose on Monday afternoon (20 January) after President Trump failed to impose tariffs following his inauguration in Washington.

Trump previously warned he would introduce tariffs of 60% on Chinese goods and 10% on global imports, as well as a 25% import charge on products from Canada and Mexico. However, he did not include the tariffs as part of his first batch of executive orders.

As a result, the pound reached its highest level in 10 days, compared with the US dollar. According to Reuters, the Canadian dollar, the Mexican peso, the euro and the Chinese yuan also rose on Monday.

The figures contrast with when Trump won the US presidential election on 7 November 2024, when the US dollar rose 1.4% against the pound to £0.777 and 1.8% against the euro to €0.931.