""It's kind of a hidden tax," says economist Thomas Savidge of the conservative-leaning American Institute for Economic Research. "What your dollar is going to be able to buy is going to shrink.""
"Trump has suggested a strong dollar puts the U.S. at a disadvantage and that a weak dollar helps American industry. "You make a hell of a lot more money with a weaker dollar," he said last year."
"In recent months, corporate earnings calls have been peppered with talk of how a weaker dollar has helped companies from Philip Morris to Coca-Cola, with executives pulling out C-suite phrases like "favorable currency impact" to note how the dip brought tailwinds outside the U.S. that added to bottom lines."
The U.S. dollar has declined about 10% against major currencies since President Trump took office, contributing to rising costs for consumers. This decline represents the steepest drop in over 50 years. A weak dollar raises prices on imports but can enhance American exports. While presidents typically advocate for a strong dollar, Trump has expressed that a weaker dollar benefits American industry. Many corporations, including Philip Morris and Coca-Cola, have reported positive impacts on earnings due to the weaker dollar.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]