American Dollar Remains Steady Amid Tariff Concerns. The ongoing trade war that President Trump has been promoting within the United States has led to many concerns about the stability of the American dollar. The new tariffs that Trump is imposing on various countries throughout the world have been threatening the value of the American dollar.
The American dollar has remained steady in recent time even with the fears surrounding the tariffs as they come along. The dollar had a trade value of 95.110 around the end of the trading day on Thursday. Part of this comes as the global economy has concerns over the American dollar following many of these trade actions and concerns that people may not want to do as much business with the country due to those changes.
The value of the dollar has dropped in comparison with other currencies. The USD/GBP pair was down to 0.773. The currency pair had been close to 0.785 a month earlier.Advertisement
Meanwhile, the USD/CAD pair has shifted around with the pair going to 1.30 in recent time. The currency has had the same value for much of the past week, although that total had gone down to before 1.295 in recent time as there were concerns with the United States’ economic relationship with Canada. The issues have come surrounding the Americans’ inability to handle a new economic deal with Canada and the Americans adding tariffs with Canada producing their own in response.
Another note about the American dollar came from its concerning change in value versus the Japanese yen. The USD/JPY pair went down to 110.70 and is not showing much of a chance to improve.
Although the drop was less than a tenth of a percentage point, there are concerns that the American government may look at Japan next in terms of who to target. This comes as President Trump has expressed significant issues surrounding the trade deficit between the United States and Japan. Many of the tariffs and other actions the United States is imposing against other countries have come as Trump argues that those other countries are taking advantage of the United States.
The ongoing issues with the American dollar have been exacerbated by many of the new tariffs that the country is passing. Part of this includes the potential for the United States to add an additional $200 billion on tariffs on Chinese imports. Although the tariffs against China may not cause as much damage to the American dollar as with others, there is a realistic potential that the dollar might be hurt if the tariffs become far too complicated or complex that have come about in recent time.
Meanwhile, there are concerns that the American economy could be hurt due to the added tariffs. This comes as many products in the United States are becoming increasingly expensive. Many companies are raising their product prices to cover the changes in material values due to the tariffs. Some companies have even moved jobs to other countries or are threatening to do that as a response to the increased expenses coming off of the tariffs.