Why Trump’s Tariffs Are Driving the Dollar Lower

WSJ Heard on the Street columnist Jon Sindreu explains why the dollar has sunk to its lowest level of the year following President Trump’s sweeping tariff blitz.

#Trump #Tariff #Shorts

[johnelswick]

Trump’s MAGAnomics kicking in, hang on for a wild ride.

[ropro]

lol, good luck with your weaker dollar, isolation and impeding recession, Potus! 🤣

[marcomora]

I'm a software developer, and I still don't understand why I understand economics more than economists.

The power of the dollar lies in trust. There are a series of legal mechanisms that protect the stability of the dollar, and the assumption is that the US president won't try to circumvent those mechanisms. trump has circumvented some of those mechanisms and tried to circumvent the rest. He has destroyed trust in the dollar, and even if he backtracks, it's already too late; that trust won't come back.

[UncleWally]

Can anyone in their right mind interpret this as an act of American leadership when President Trump says, “The markets are going to boom, the stock is going to boom, the country is going to boom, ” as he leaves the White House using tax dollars to fly to his Florida golf club . . .

[j_chillaf]

MAGA - Make America Great (depression) Again

[hichemlalaoui]

Your US tax dollars at work ladies and gentlemen. While your kids get a substandard education, the streets are filled with homeless people, and you can't afford your groceries ..but hey at least we can fund a proxy war that has ZERO to do with us, isn't our problem, and isn't our conflict. That extra money they just got from congress is of course on top of the 10 mil we already give them DAILY. We give them more money then any other country on the planet. Have for decades. Remember that the next time you drive on a busted up street or pay 4$ a gallon at the pump and wonder what it is congress does with all that money we give them.

[I_am_somebody_]

What he is describing is a policy called "Import substitution" which was used by latin american countries between 1950-80

It works by essencially forcing the country via tariffs to produce everything locally. It helped latam since it forced countries to develop an industry sector instead of buying everything abroad

The problem is that it also makes the local businesses only care about local competition, so its not as efficient or competitive abroad.

This stopped in the 80s due to the oil shocks which drowned latam in debts. Many countries couldnt produce enough domestic oil and imported it, but had no foreign reserves to buy it with...

[perpetualcollapse]

People saying the pain in the short terrm will lead to gains in the long term dont have bills to pay or mouths to feed. 😅

[McDonut]

Imagine being a consumer driven economy, but purposing making it hard to consume

[lh]

So double wammy, imports get more experience with tariffs and now even more expensive with a weeker dollar

[jordankendall]

China has an extremely high protectionist economy, it's just that they don't use tariffs to protect their industries. China simply blocks foreign competitors by limiting direct foreign investment and restricting ownership of Chinese assets by foreigners. This is why you don't see a lot of the major U.S. brands in China. So you are incorrect in your assumption that the U.S. tariff policies are like Latin America of the past simply because the U.S. economy is nothing like any Latin American economy. I think it would be extremely naive to bet against or not invest in American businesses.

[piecebeapawnu]

Lower 401k's and higher inflation prices, unemployment and a lower dollar are all good for Americans. God I love President Trump, he's so smart and so awesome! USA, USA🇺🇲🇺🇲🇺🇲

[leifsk]

Hmmm, so it's like we're acting like an emerging economy?

[acmiguens]

Fun fact: around the time frame mentioned, Brazil was a dictatorship. Interesting how things can align like that

[DogInDeniel]

well your currency's value also depend on the political climate. What if trump and republicans try to kick feds to curve and change monetary policy. If currency's future in hands of guy who bankrupted Casinos who would trust to keep it.

[nasircornish]

And to think we have him for three more years

[Video-vvvc]

How much longer will the fall stop and reverse?

[ilsavv]

I still don't understand how the tariffs lower the dollar.

[egal]

In forex central banks probably decide what happens.

[ThierryTiramisu]

please report and downvote all the bots, please!