Dollar Decreases 1% on Tariff Report

The dollar kicked off the unofficial start to 2025 down more than 1% after reports that President-Elect Trump is cooling on tariffs beyond critical imports providing potential relief to foreign economies.

The tariffs could be limited only to industries that are considered to be economic security.

The euro has been particularly hurt by talks of sweeping tariffs but increased by more than 1% against the dollar reaching over $1.043, which is still close to historic lows.

The softer tone of the incoming Trump administration is likely due to economists’ fear that heavy tariffs could cause inflation again and limiting interest rate cuts from the Federal Reserve.

This week is slated for a number of data reports after two weeks of lighter news due to the holidays.