The Goldman Sachs Group Inc. Global Foreign Exchange (FX), Rates and Emerging Markets Strategy Head Kamakshya Trivedi told CNBC on Tuesday that the tariffs United States President-elect Donald Trump said he will impose on parties such as China, Mexico and Canada could lead to volatility in trading with and investing in currencies.
"This is going to be something that we are all going to have to get used to. ... [C]urrencies are to some extent the primary means of responding to any sort of tariff announcement," he explained, noting that it is still unknown how strict the tariffs will be and if they are merely a "negotiating tool."
"But I do think at the end of the day, we are going to see an increase in tariffs on a number of economies, primarily China, and I think that is going to elicit a stronger dollar response on a broad basis," Trivedi noted.
