- The USD/Try gains ground amid renewed concerns about tariffs after Trump’s warning to BRICs allies.
- President Trump threatened to impose an additional 10% tariff on BRICS nations, accusing the group of following anti -American policies.
- The Turkish lira, sensitive to risk, weakens in the midst of the climbing tensions in the Middle East.
The USD/Try extends its profits per second consecutive session, quoting around 39.98, marking new historical maximums, during the early European hours on Monday. The torque can be seen as the US dollar (USD) receives support from the feeling of risk aversion, driven by the warning of US President Donald Trump about an additional 10% tariff to BRICS nations.
President Trump published on social networks on Monday: “Any country that aligns with BRICS anti -American policies, an additional 10%tariff will be charged. There will be no exceptions to this policy.” In addition, the feeling of risk weakens due to the renewed concerns about tariffs, since Trump could send 12 or 15 letters on tariffs later in the day, with the expectation that trade agreements or letters with most nations are made for July 9.
The US Treasury Secretary, Scott Besent, said on Sunday that US President Donald Trump will send letters to some commercial partners, warning that tariffs could return to the levels of April 2 on August 1 if progress is not achieved in a commercial agreement. The US Secretary of Commerce, Howard Lutnick, said Trump is finishing specific rates and agreements and could send 12 or 15 tariff cards on Monday.
In addition, the Turkish lyre (Try), risk sensitive, loses ground due to the ongoing conflict in the Middle East. The indirect conversations of Alto El Fuego in Qatar between Israel and Hamas have concluded without advance, according to a BBC report. Israel killed at least 39 people in Gaza on Sunday, one day after killing at least 78 Palestinians in attacks along the besieged strip.
The Central Bank of the Republic of Türkiye has implemented more orthodox monetary policies to curb inflation and rebuild investor confidence. In March 2024, the Central Bank raised the interest rates to 50% and kept them stable until December, when it began to reduce them. The current policy rate is 46%. Meanwhile, inflation fell to 35.05% in June 2025, its lowest level since November 2021.
Tariffs – Frequently Questions
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
