Trump weakens the dollar instead of increasing it – in addition to the price that Americans pay for more expensive imports

• US dollar falls President Donald dived Trump tariffs and dived after explaining the tasks much more steep than expected on the “Day of Independence”. This is contrary to what the markets expected before starting the trade war. Weak Greenback contributes to the costs of Trump’s aggressive import taxes by making imports more expensive.

President Donald Trump’s tariffs hit the dollar, challenged expectations for a stronger Greenback, and after the import taxes, the Americans were added at the price.

This year, the US Dollar Index, which watched Greenback against a basket of other global currencies, fell by 4.7% because it gradually pricing investors under the economic impact of expanding tasks.

Earlier this year, after applying tariffs to China, Canada, Mexico, Steel, Aluminums and cars, Trump shocked new tariffs in almost every trading partner, which is much more upright than expected on Wednesday.

Fitch Ratings estimated that the overall effective tariff rate would be about 25% –Highest since 1909This is 18% of more than 10 floors of last year by 2.3%. As a result, JPMorgan economists increased their stagnation rates from 40% to 60%.

The “Day of Liberation” announced the dollar index more than 2%and marked the worst one -day loss in about 10 years, and the previous tariffs stables a previous decline because it eroded the views on the US economy and American assets.

But this didn’t have to be like this. The Presidential Campaign and then Wall Street’s “Trump Trade” included a bet in favor of the United States and the dollar in favor of the United States. Instead, the real tariffs of Trump were so cruel that they end the “American exception”, which the US economy and financial markets once boasted.

Companies are expected to absorb some of their tariff costs and transfer the rest to consumers. According to some estimates, the additional cost of automatic tariffs alone may mean a price increase of $ 5,000-10,000 per vehicle.

Meanwhile, former Treasury Secretary Larry Summers said that the general net impact of tariffs will cost about $ 300,000 to a family of four.

Beyond that, a weaker dollar will result in higher prices for imports from certain countries. For example, a car priced 50,000 euros from Germany will turn to approximately $ 55,000 in the exchange rate of $ 1,095 per euro on Friday before factoring on tariffs.

This premium is about $ 4,000 more than the beginning of January, which is at the top of the Trump trade and the exchange rate is $ 1.02 per euro and that investors can be again possible.

On the Flip side, a stronger dollar imports will make it cheaper. Scott Bessent, during the January approval for the Treasury Secretary, The dollar can appreciate 4% In response to a 10% tariff, “10% does not move to consumers”.

Trump, last weekend, if prices in foreign cars rise, consumers will buy American cars, because automobile tariffs will increase the prices of car manufacturers will increase the concerns, he said.

“I don’t care if they increase prices, because people will start buying American -made cars,” he saidInterview with NBC NewsSaturday.

“I don’t care less.

This story initially took part in Fortune.com