TOKYO (Reuters) – The dollar strengthened against major currencies on Tuesday after U.S. President-elect Donald Trump threatened Canada and Mexico with 25% tariffs on all imports to the United States.

Stocks fell after sturdy gains across the globe in the previous session following the nomination of fund manager Scott Bessent as Treasury Secretary, which investors see as the voice of Wall Street in Washington.

“It’s almost as if Trump is trying to remind the markets who’s in control, following the nomination of Scott Bessent as Treasury secretary – a man the markets expect to cool Trump’s power,” said Matt Simpson, senior market analyst at City Index.

At the start of the Asian session, the dollar rose 1.5% to 20.58 Mexican pesos and rose 0.84% ​​to 1.4103 Canadian dollars. It added 0.14% to 154.43 yen.

The euro fell 0.4% to $1.0453 and sterling lost 0.24% to $1.25405.

The dollar fell 0.6% to $0.6466.

The Australian stock benchmark fell 0.24% and futures fell 0.4%.

The U.S. fell 0.2% after the cash index rose 0.3% overnight, when the small-cap index also hit an all-time high.