Marketplace · Monday, August 3, 2026
A strengthening dollar, particularly against the Japanese yen, could negatively impact US export competitiveness and make imports more attractive. This contradicts the Trump administration's objectives with its tariff policies.
“There is another reason to keep the dollar from getting too strong against Japan's yen. Trade, says Catherine Dominguez of the University of Michigan.”
“If the dollar strengthens, that hurts our exports on world markets and makes imports more attractive.”
“Because exports would be more expensive overseas and imports would be cheaper here at home.”
“Exactly the opposite of what the Trump administration is trying to achieve with its tariffs policies.”