The Japanese yen appreciated to around 143.5 per dollar on Monday, marking its third straight day of gains as global trade tensions reignited safe-haven buying. Investors sought shelter in the yen after U.S. President Donald Trump threatened to double tariffs on steel and aluminum imports to 50%, effective June 4.

The announcement sent shockwaves through global markets and weighed on Japanese steelmakers. Shares of JFE Holdings and Kobe Steel dropped on fears of reduced competitiveness in the U.S. market. However, Nippon Steel remained relatively stable, benefiting from Trump’s favorable comments on its pending merger with U.S. Steel, which could shield it from the worst of the tariff impact.

Beyond U.S.-Japan trade friction, tensions flared between Washington and Beijing as well. China pushed back against Trump’s claims that it had breached a recent trade deal negotiated in Geneva. The renewed spat raises concerns of broader disruptions in global trade flows, which in turn has added to the yen’s appeal as a safe-haven currency.

On the domestic front, Japan delivered a positive surprise. First-quarter capital expenditure rose more than expected, with both manufacturing and non-manufacturing sectors showing strong investment appetite. The data suggests that Japanese firms remain confident in the long-term outlook despite mounting external headwinds.

Looking ahead, the yen is likely to remain sensitive to any new trade-related headlines. With the June 4 tariff deadline looming and U.S.–China relations deteriorating, volatility in currency markets could persist, giving the Japanese yen continued support as geopolitical uncertainty unfolds.