Q24N (EFE) The US dollar fell on Monday morning by around 1% after the Washington Post newspaper said that President-elect Donald Trump had “watered down” his plans to impose universal tariffs, with a special impact on products from China, Mexico and Canada.
According to the newspaper, which cites three sources from Trump’s entourage involved in these plans, the tariffs will be applied only to imports considered critical to the US economy.
At this time, the dollar index, which is calculated according to a basket of six currencies, is down 0.69% to 108.21, but has fallen as low as 107.78.
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It is no coincidence that the fall occurred at seven in the morning, just after the Post revealed Trump’s plans, which so far no one has denied.
The sources cited by the newspaper did not specify exactly what these critical products would be, but they would be related to sectors that Trump’s team is trying to bring back to the United States, after decades of relocation, such as the defense industry (steel, iron, aluminum and copper), medical products (syringes and pharmaceutical material) and energy (batteries, solar panels and rare minerals).
Trump’s promises during the election period to apply universal tariffs of 10 to 20%, and even 25% to Mexican and Canadian products if both countries do not apply stricter border controls, were met with skepticism from economists, who warned of the inflationary effects that such measures would trigger, particularly in products as sensitive as food and electronics.
According to the newspaper, discussions are continuing to work out all the details and no decisions have been made yet, but Trump maintains his idea of formalizing the tariff escalation in some way in the first hours after taking office on January 20.
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