US President Donald Trump argues that a strong dollar is detrimental to American industry, claiming it hampers exports and job growth while exacerbating the trade deficit. However, experts like David Lubin note that the dollar's strength affects import prices, making foreign goods cheaper and domestic goods more expensive. They emphasize that currency values are largely determined by global markets, not presidential policies. Investment strategist Anthony Abrahamian points out that strong US consumer demand is a major driver of imports. While the government can influence the dollar's value to some extent, mechanisms like interest rate changes lie mostly outside presidential control.
"When the dollar is strong, US imports rise because foreign goods become cheap relative to domestically produced goods. At the same time, US exports fall as they become more expensive."
"The dollar's value is determined by a huge global foreign-exchange market, and not the president or the US government."
"The US consumer is the world's number one customer spending more freely than elsewhere else and so America is likely to import more than it exports."
"The US government does have a number of levers available to steer the dollar and the wider economy, such as cutting interest rates."
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