NZD/USD Rises Above 0.6000 on Trump’s 50% Tariff Threat and USD Weakness

NZD/USD Rises to 0.6000 as Trump Tariff Fears Weigh on US Dollar

NZD/USD Surges Above 0.6000 Amid Weakening USD and Trade War Escalation

The New Zealand Dollar (NZD) advanced over 0.50%, lifting the NZD/USD pair above 0.6000 in early Monday Asian trading. The move reflects continued weakness in the US Dollar (USD) as global markets respond to escalating tariff threats from President Donald Trump.

Trump Announces Tariff Hike on Steel Imports to 50%

Speaking at a rally in Pennsylvania, President Trump declared plans to double tariffs on steel imports from 25% to 50% in an effort to further shield the US steel industry from foreign competition.

"We're gonna move it from 25% to 50% — the tariffs on steel entering the United States, which will further protect the steel industry," Trump said, as quoted by Reuters.

The statement sent ripples across currency markets, weakening the US Dollar and lifting risk-sensitive currencies like the NZD.

Read more on Trump’s trade policy impacts.

US Court Temporarily Backs Trump’s Tariff Power

Adding legal weight to Trump’s announcement, the US Court of Appeals for the Federal Circuit temporarily reinstated the administration’s authority to impose tariffs. This overturned a lower court ruling that had initially blocked the so-called “Liberation Day” tariffs.

This legal back-and-forth fuels uncertainty in global trade markets and contributes to volatility in the USD.

Follow our Trade War Legal Tracker for real-time updates.

RBNZ Flags Neutral Rate Range After Cut

Supporting the NZD further, RBNZ Assistant Governor Karen Silk stated that the current interest rate sits in the neutral range of 2.5%–3.5%. This follows last week’s rate cut and signals that further easing may not be imminent, lending support to the Kiwi.

Check our full RBNZ Monetary Policy Updates.