The US Treasury Secretary, Scott Besent, said during the weekend that the fall of the US dollar (USD) this year is a normal variation, adding that the United States still has a strong dollar policy.
Outstanding statements
The United States still has a strong dollar policy.
The currencies rise and go down.
More fiscal expense in Europe indicates that the euro should be seen.
I don’t think anyone is necessarily talking about a fed in the shadow.
A position in the Fed will open at the beginning of the year when Kugler retires.
A group of commercial agreements (10-12) will be concluded by then.
Approximately 20 other nations will see reciprocal rates to enter into force or see a base of 10% if they are negotiating in good faith.
It all depends on Trump.
My inclination is that USTR will begin a 301 investigation on the Digital Services Tax of Canada.
Market reaction
At the time of writing, the American dollar index (DXY) is quoting 0.03% lower in the day, quoting 97.22.
FAQS tariffs
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.
