FX.co ★ Dollar Falls as on Fresh Tariff Fears

The dollar index fell below 97.5 on Monday, giving back part of last week’s gains after President Donald Trump said he intends to raise global tariffs from 10% to 15%. His announcement followed a Supreme Court ruling that struck down his “reciprocal” tariff policy. In response, Europe’s trade chief said Sunday he would propose suspending ratification of a trade agreement with the United States, while India postponed talks to finalize an interim deal with Washington. Even so, US Trade Representative Jamieson Greer stressed that existing trade arrangements with key partners — including China, the EU, Japan and South Korea — would remain in place. Markets initially reacted positively to Friday’s court decision, but growing uncertainty over Trump’s next moves soon overshadowed any potential benefits from lower tariff rates and possible reimbursements. The dollar tends to weaken during periods of heightened policy uncertainty in Washington, as foreign investors reduce their exposure to US assets.