- The USD/CHF is marginally higher, but is maintained in a lateral lateral below 0.8000.
- The US president Trump considers increasing the general tariff for nations that failed to close an agreement during the 90 -day tariff pause period.
- The discouraging market feeling has improved the demand for safe refuge of the Swiss Franco.
The USD/CHF pair rises about 0.7980 during Friday’s Asian negotiation hours. The Swiss frank pair is stable in an risk of risk to risk, followed by fears of an increase in the general tariff of 10% of the United States.
On Thursday, US President Trump said in a telephone interview with NBC News that will impose a “15% or 20%” tariff to nations that have failed to ensure a commercial agreement during the 90 -day reciprocal tariff pause period. “We are simply to say that all the remaining countries are going to pay, either 20% or 15%. We will solve it now,” Trump said.
This scenario is unfavorable for the assets of many countries, since Washington has so far closed agreements with the United Kingdom and Vietnam, a limited pact with China and has expressed confidence towards an interim agreement between the US and India.
Meanwhile, the discouraging market feeling has improved the demand for safe shelter assets, such as the Swiss Franco.
In addition, the president of the US has also sent a letter to Canada, specifying a tariff rate of 35%, which will be separated from other sector levies. He has also threatened to impose tariffs on eurozone imports. However, the 27 -nations block has declared that it seeks to reach an agreement with Washington before the deadline of August 1.
At the time of writing, the American dollar index (DXY), which follows the value of the dollar against six main currencies, quotes the highest about 97.90, the highest level seen in two weeks.
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.
