FX.co ★ Australian Dollar Weakens Amid Tariff Threats

On Monday, the Australian dollar fell to approximately $0.656, reversing the gains seen in the previous week. This decline was prompted by renewed tariff threats from U.S. President Donald Trump, which reignited fears of a potential global trade war. President Trump declared a 30% tariff on imports from the European Union and Mexico effective August 1, while also hinting at possible additional duties on other nations, urging them to return to the negotiating table. Additionally, Trump proposed a substantial 200% tariff on Australian pharmaceuticals, inciting concern among Australian industry leaders and government officials due to potential economic losses of up to A$2.8 billion. Meanwhile, investor focus is shifting towards upcoming reports on consumer confidence, inflation expectations, and employment figures, expected later in the week.