Over the first half of the year, the U.S. dollar has weakened by nearly 10%, surprising many who expected tariffs to bolster it.
While a softer dollar can make American exports more competitive and “soften” the impact of tariffs, it also risks higher import costs and inflationary pressure—potentially complicating President Trump’s goals for low consumer prices and steady interest rates.
Trump publicly insists on a strong dollar, creating mixed signals within his administration as they weigh the trade-offs of a sliding currency.