President Trump’s renewed aggression on the global economic stage has seen the pound reach a three-year high against the dollar, while gold approaches an all-time high. Over the weekend, the US president promised to raise tariffs on steel and aluminium on June 4, and today Beijing accused Washington of “seriously violating” the trade truce between the two countries.
As a result investors ditched the dollar and the pound strengthened 0.73% to $1.355, the highest it’s been since mid-2022. Since the start of the year, the pound has gained 8% on the dollar. The pound has also strengthened against the euro to €1.18.
Meanwhile, the price of gold has climbed 1.75% to $3,349.65 per ounce, as the geopolitical and economic ruptures of 2025 continue to see investors opt for safe havens. On April, gold hit an all-time high of $3,500.05.
The pound’s surge against the dollar comes as the trade war truce between China and the United States appears to be faltering. On Monday, China accused the United States of “seriously violating” the arrangement after Mr Trump said in a post on Truth Social that “China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US”.
Over the weekend, Mr Trump also revealed plans to ramp up tariffs on steel and aluminium imports from 25% to 50% on June 4. He wrote on Truth Social: “It is my great honor to raise the Tariffs on steel and aluminum from 25% to 50%, effective Wednesday, June 4th. Our steel and aluminum industries are coming back like never before.”
This comes following the bombshell court ruling that Mr Trump’s sweeping levies were illegal. However, an appeals court then temporarily reinstated them. The White House says it intends to challenge the original decision.
Writing on Truth Social, Mr Trump accused the courts of threatening the economic future of the US. He said: “If the Courts somehow rule against us on Tariffs, which is not expected, that would allow other Countries to hold our Nation hostage with their anti-American Tariffs that they would use against us. This would mean the Economic ruination of the United States of America!”