USD Slides: Tariffs & Weak Data Fuel Decline
- The dollar is losing ground, impacted by renewed tariff threats and disappointing economic data.
- initial optimism followed U.S.-china negotiations in London, but sentiment shifted after a soft CPI report, mixed commentary on trade talks, and President Trump's tariff rhetoric.
- Trump's declaration that the U.S. will maintain an "effective" 55% tariff on Chinese imports, while imposing only a 10% tariff on U.S.
The dollar slides as tariff threats and weak economic data fuel its decline. Investors are reacting to renewed trade tensions and disappointing inflation figures, causing the euro to rally while US equity indices also stumble. President Trump’s aggressive tariff rhetoric, including plans for a 55% tariff on Chinese imports and possible tariffs on the EU, is significantly impacting market sentiment. Weak CPI data further intensifies expectations of Federal Reserve easing. The British pound also feels the pressure due to disappointing UK data. News Directory 3 is tracking these shifts closely, with gold and oil prices initially boosted by geopolitical concerns, only to later retreat. Explore what’s next for these key markets.
dollar under Pressure Amid Tariff Talk and CPI Data
Updated June 13, 2025
The dollar is losing ground, impacted by renewed tariff threats and disappointing economic data. The euro climbed above $1.15,reversing last week’s gains,while U.S. equity indices also experienced losses. Investors are weighing the impact of potential trade restrictions and their effect on the global economy.
initial optimism followed U.S.-china negotiations in London, but sentiment shifted after a soft CPI report, mixed commentary on trade talks, and President Trump’s tariff rhetoric. The weak CPI data increased expectations for Federal Reserve easing in 2025.
Trump’s declaration that the U.S. will maintain an “effective” 55% tariff on Chinese imports, while imposing only a 10% tariff on U.S. exports to China, further dampened risk appetite. He also indicated plans to set unilateral tariff rates within two weeks, possibly targeting the EU. Trade negotiations with Japan, South Korea, and India are ongoing.
The British pound is also facing pressure against the euro after disappointing monthly reports and industrial production data. This adds pressure on the Labour government to revise its fiscal plan. A dovish Bank of England meeting is increasingly likely.
Overnight, market sentiment had boosted gold and oil prices, fueled by reports of potential Israeli strikes on Iranian nuclear facilities. However, both commodities are giving back those gains, though they are expected to remain supported nonetheless of the dollar’s performance.
What’s next
Investors will closely monitor upcoming economic data and geopolitical developments to gauge the direction of the dollar, gold, and oil prices. Any further escalation in trade tensions or geopolitical conflicts could lead to increased market volatility.