The U.S. dollar has been gaining value against other major currencies since early 2018, as investors flocked to U.S. assets for favorable returns because of the relative strength of U.S. economic growth.
Recently, another factor has been driving investors into dollars, in turn driving the value of the dollar up: escalating trade tensions, with the imposition of tit-for-tat tariffs between the U.S. and key trading partners, including China and the EU.
A stronger dollar hurts U.S. producers of manufactured goods and agricultural products, putting them at a competitive disadvantage versus companies and farmers in countries with weaker currencies. So the Trump Administration’s trade policy is having the unintended follow-on effect of suppressing U.S. exports and weakening U.S. exporters.
Click the audio player above to hear the full story.
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.
Thank you to our Marketplace Investors!
Your generosity keeps nonprofit journalism strong, now more