NZD/USD remains under selling pressure below 0.5750 on new Trump tariffs

• NZD/USD softens to around 0.5730 in Thursday's early Asian session.
• China will face a 54% tariff under the new Trump policy, weighing on the Kiwi. 
• Traders raise their bets that the Fed will cut rates in June as Trump puts on new tariffs. 

The NZD/USD pair faces some selling pressure to near 0.5730 during the early Asian session on Thursday. The New Zealand Dollar (NZD) weakens against the US Dollar (USD) after US President Donald Trump announced reciprocal tariffs that would escalate a trade war.

Trump said on Wednesday that he would impose a 10% baseline tariff on all imports to the United States (USD) and higher duties on some of the country's biggest trading partners. A White House official said Trump is slapping a 54% total tariff rate on imports from China, starting April 9. 

Chinese imports had already been subject to a 20% tariff. An additional 34% in reciprocal tariffs will be imposed, according to the official. The potential trade war between the US and China and economic uncertainty could drag the China-proxy Kiwi lower, as China is a major trading partner to New Zealand. 

On the other hand, traders raise their bets that the Federal Reserve (Fed) will start cutting interest rates in June and deliver a total of three quarter-point reductions by October, as Trump unveiled new tariffs on imports, which analysts expect could boost inflation but could also slow the economy. 

According to the CME FedWatch tool, short-term interest-rate futures are now pricing in nearly a 70% odds of a Fed rate cut in the June meeting, up from about 60% before the tariffs were announced. This, in turn, could undermine the USD and create a tailwind for the pair.