US dollar sags as caution persists ahead of Trump's tariff announcement

What we have heard from business of all sizes, across all industries, from around the country is that these broad tariffs are a tax increase that will raise prices for American consumers and hurt the economy,

said Neil Bradley, chief policy officer at the US Chamber of Commerce, the corporate lobby group

April 2nd 2025 will be forever remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again,

according to Trump

While a 20 per cent blanket tariff rate would be theoretically seen as a net positive for the U.S. dollar, the market is most intently focused on whether tariffs accelerate the stagflation risk in the U.S. economy,

said Chris Weston, head of research at Pepperstone

The dollar is starting 'Liberation Day' off on the back foot, and it's probable that markets are anticipating yet another last-second walkback of tariffs,

said Helen Given, director of trading, at Monex USA in Washington

A wide blanket tariff globally capturing all the major trading partners with a 20 per cent-25 per cent tariff would be seen as most aggressive and likely elicit the biggest risk-off reaction,

said Derek Halpenny, head of research at MUFG

But there has been speculation that discussions on trade deals could exclude certain countries ... and the more examples of that, the better the markets can take the announcements,

he said, citing Britain as one country that may get a carve-out

Markets are going to be jittery ahead of the announcement,

said Carol Kong, a currency strategist at Commonwealth Bank of Australia

A front-running of tariffs and shift to minimize import exposure is driving up prices, while persistent uncertainty is crimping underlying demand and leaves manufacturers longing for clarity,

said economists at Wells Fargo in a note