Trumps tariff threats signal start of a wild ride in currency markets [Video]

President-elect Donald Trump‘s vow to implement additional tariffs on China, Canada and Mexico on day one of his presidency signals the start of a wild ride in currency markets, strategists say, warning it would be risky for investors to underestimate the impact on foreign exchange rates.

Trump said Monday he would sign an executive order on Jan. 20 imposing a 25% tariff on all goods coming from Canada and Mexico, a move that could violate the terms of a regional free trade agreement.

The former president, who has previously called tariff “the most beautiful word in the dictionary,” also said he plans to raise tariffs by an additional 10% on all Chinese products coming into the U.S.

The announcements prompted a knee-jerk reaction in currency markets, with the U.S. dollar rising more than 2% …