FX.co ★ Dollar Eases as Trump Announces New Tariffs

The US dollar index dipped below 97.5 on Tuesday, losing ground following gains from the previous session. This shift came on the heels of President Donald Trump's announcement of revised tariff rates targeting 14 countries that have yet to finalize trade agreements with the United States. This list includes key exporters like Japan and South Korea, which are now facing 25% tariffs. Additionally, Trump signed an executive order extending the deadline for reciprocal tariffs from July 9 to August 1, allowing negotiators more time to finalize agreements. Furthermore, he signaled potential additional 10% tariffs on nations aligning with what he termed the "Anti-American policies of BRICS," as the group gathered for a summit in Brazil. Despite the dollar's decline on Tuesday, it had gained strength on Monday amid reduced trade tensions and lowered expectations for imminent interest rate cuts by the Federal Reserve. The release of a robust US jobs report for June eased the urgency for policy easing, leading markets to largely dismiss the prospect of a rate cut in July.