The dollar began to depreciate after Trump's denial of abandoning his tariff policy

The U.S. dollar index fell after President-elect Donald Trump denied reports that his new administration would pursue a less aggressive tariff policy than he had previously promised. This was reported by Reuters on January 6.

"The dollar index, which measures the exchange rate against a basket of currencies including the yen and the euro, fell 0.73% to 108.17," the material said.

European currencies rose after The Washington Post (WP) reported that day that Trump's aides are studying tariff plans that would apply to all countries but only apply to certain sectors deemed critical to national or economic security.

It was noted that this would mark a significant shift from the U.S. president-elect's campaign promise of broader tariffs.

In a social media post, Trump called the story erroneous and "another example of fake news".

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Earlier on December 20, 2024, financial analyst Mikhail Belyaev, PhD, shared with Izvestia that Trump's imposition of 10-20% duties on goods from Europe will have a drastic impact. According to him, it threatens to slow down the global economy, as well as lead to price hikes and spur inflation in the US.

On the same day, the US President-elect threatened the European Union (EU) with increased import duties if the association does not increase purchases of American energy resources. The corresponding post the politician published on his page in the social network Truth Social. If the EU does not increase purchases, "it is waiting for tariffs on the full program," the President-elect threatened.

In November, WP reported that the trade duties that Trump is going to introduce could cause serious damage to EU countries. It is specified that large European economies at the moment are already lagging behind the United States as a result of the pandemic. According to economists, Trump's "protectionist measures" could cause further recession in Europe and complicate relations between allies.