Dollar Drop Clouds Debate on Who Pays for Tariffs
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The value of a nation’s currency can tell you a lot about what investors think of the government in charge and the economy it oversees. So the US dollar’s slump in recent weeks looks like a bad omen for President Donald Trump and the American economy.
But there’s another reason a weakening dollar isn’t great for Trump and his team: The world’s reserve currency is doing the opposite of what economics tells you it should when the US raises tariffs sharply.