From Investing.com: 2025-02-11 08:24:00

President Trump’s tariffs on Canadian and Mexican imports are on a 30-day pause, but European imports could still face tariffs, leading to inflation. Tariffs are paid by domestic importers and passed on to customers, driving up prices and inflation. Tariffs can trigger a stronger US dollar, reducing demand for imports and boosting the dollar’s value.

A stronger US dollar could mitigate tariff inflation by increasing purchasing power and lowering import costs. Rising inflation from tariffs could prompt interest rate hikes, causing the dollar to rise further. The US, as the largest importer, could see slower international growth due to tariffs, attracting foreign investment back to the dollar.

Trump’s stance on the US dollar has shifted, with Treasury Secretary Bessent advocating for a strong dollar policy. Bessent emphasizes the importance of a strong dollar to prevent currency manipulation by other countries.



Read more at Investing.com: How a Stronger US Dollar Could Counter Tariff Inflation