(April 3): The dollar slid broadly on Thursday, while the euro was steady after US President Donald Trump announced more aggressive-than-anticipated tariffs against major trading partners, jolting the markets as investors sought safe haven yen and Swiss franc.

Trump said he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country's biggest trading partners. The tariffs will take effect on April 9 and appeared to target about 60 countries.

Trump has already imposed tariffs on aluminium, steel and autos, along with increased duties on all goods from China.

The new levies ratchet up a trade war that Trump kicked off on his return to the White House that has rattled markets as fears grow a full-blown trade war could trigger a sharp global economic slowdown.

"The markets are in risk-off mode and pricing-in weaker global economic growth," said Kyle Rodda, senior financial market analyst at Capital.com.

"The issue for markets in the coming days will be clarifying whether there's scope for trading partners to re-negotiate these tariffs and whether there is the risk further trade restrictions are possible from here."

Risk-sensitive Australian dollar fell 0.5% to US$0.6268, while the New Zealand dollar slipped 0.26% to US$0.5730.

The new duties left investors scrambling for shelter in traditional safe havens: the Japanese yen and the Swiss franc. The yen strengthened nearly 1% to 147.99 per dollar, while Swiss franc was stronger at 0.8787 per dollar.

"Safe haven trades in the wake of the announcement will include the Japanese yen most definitely," said John Hardy, chief macro strategist at Saxo Bank.

"Treasuries can be a safe haven, especially at the short end of the yield curve, I think would be the two chief trades. But even the longer-term treasuries could do well."

The euro, meanwhile, initially surged following the tariff announcements and was last 0.43% higher at US$1.0875 in early Asian hours. Sterling was 0.28% higher at US$1.3047.

Rodrigo Catril, senior currency strategist at National Australia Bank, said the euro's resilience is probably due to Europe focusing on supporting its economy from the impact from US tariffs, rather than looking to retaliate.

"So I think the market has liked that approach of calmness and measuredness from Europe."

China's offshore yuan hit a one-month low immediately after the announcement. In emerging markets, Mexican peso was 0.25% weaker at 20.2520 per dollar.

Canada and Mexico, the two largest US trading partners, already face 25% tariffs on many goods and will not face additional levies from Wednesday's announcement.

Traders also added to bets the Federal Reserve will cut interest rates at least three times this year, with a fourth rate cut by year's end an increasingly less far-fetched outcome, after the tariffs were announced.

Uploaded by Jason Ng