Economist Joseph Brusuelas and other experts discussed the impact of President Trump's tariff policies on global markets and the US dollar.
Shift in Forex Market Sentiment
Forex traders are turning bearish on the US dollar in anticipation of Trump's new tariffs announcement on April 2. Economist Joseph Brusuelas noted that investors are becoming more cautious about risks associated with Trump's tariff policies, leading to a downturn in the dollar since January, reflecting concerns over a potential slowdown in the US economy.
Details of Planned Tariffs
President Trump is set to announce new tariffs impacting imports from over 25 countries. According to US Treasury Secretary Scott Bessent, these measures are retaliatory against countries imposing high tariffs on US goods. Countries like China, Mexico, Canada, and the EU are noted for holding significant trade deficits with the US.
Future Predictions
Joseph Brusuelas forecasts a surge in the euro amid declining confidence in the US dollar. Mizuho Bank's Jordan Rochester predicts the euro could reach $1.12 by year-end. These forecasts align with other experts like Bank of America's Athanasios Vamvakidis, who also anticipates the euro's rise due to Trump's policies.
Trump's new tariffs are causing significant shifts in global currency markets, resulting in a weaker US dollar and a strengthening euro. Experts believe these changes may continue based on further US government actions.
