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Jul 02, 2025
US dollar plummets amid Trump's tariff policies
The US dollar dropped 10.7% in the first half of 2025—the biggest six-month fall in over 50 years.
TL;DR
A weaker dollar could make US goods cheaper abroad
A weaker dollar could make US goods cheaper abroad and help reduce the trade deficit, but it's also making investors nervous.
Uncertainty around President Trump's tariff moves and a growing national debt have pushed people away from the dollar, while inflation worries and a huge $3 trillion budget bill are adding fuel to the fire.
Surprise tariff hikes, hints at intentional devaluation
Surprise tariff hikes, hints at intentional devaluation (the so-called "Mar-a-Lago Accord"), and uncertainty in global trade have all played a part.
The last time we saw drops like this was during major policy shakeups back in 1973.