Trump defends economic advantages of a weak dollar

Trump Defends Economic Benefits of a Weak Dollar
Tariffs Will Rise If the Dollar Keeps Falling
Trump Criticizes China Over Its Currency

Just days before implementing new unilateral tariffs, President Donald Trump stated that a weak dollar enhances the impact of his trade policy.

It does so by increasing the effective value of tariffs on imports.

Although he said he prefers a strong dollar, he admitted that the current depreciation offers strategic advantages.

This was reported by EFE.

Trump Defends Economic Advantages of a Weak Dollar

U.S. President Donald Trump highlights that a weak dollar boosts the effectiveness of his tariff policy. https://t.co/37dVvos1Hn

— EFE Noticias (@EFEnoticias) July 25, 2025

During a press conference at the White House before departing for Scotland, President Trump stated that the recent drop in the dollar allows for higher tariff revenues, lowers public debt costs, and helps maintain low interest rates.

“It makes tariffs worth much more… There are a lot of good things that are hard to explain to people,” he said.

The U.S. Dollar Index, which compares the dollar to six global currencies, has fallen by 6.29% over the past year.

This decline increases the cost of imported goods—including freight and taxes—on which the new tariffs are applied. The weaker the dollar, the higher the nominal value of the tariff collected at customs.

The comment comes just one week before August 1, the deadline Trump gave trade partners to renegotiate agreements. If no deals are reached, the U.S. will unilaterally impose tariffs ranging from 15% to 50%.

“A strong dollar sounds good, but it doesn’t sell anything»

📽️ VIDEO | Trump: A Strong Dollar Sounds Good, But «You Earn Much More» With a Weak One 💵 pic.twitter.com/D8DVTaCsde

— El Economista (@eleconomista) July 25, 2025

Trump explained that although he has historically supported a strong dollar, a weaker greenback offers competitive advantages: more tourism, greater export capacity, and industrial growth.

“When there’s a strong dollar, there’s no tourism. You can’t sell factories, or trucks, or anything,” he stated bluntly.

He insisted that concerns over potential inflation linked to a weaker currency are not relevant at this time.

“It’s good for inflation, but that’s it. And we don’t have inflation,” he said.

Criticism of Asia and Silence on the Deficit

The president took the opportunity to criticize China, Japan, and South Korea, accusing them of deliberately keeping their currencies weak.

“That’s how they’ve really dominated over the years,” Trump said, reinforcing his protectionist rhetoric.

However, he avoided responding to warnings from analysts and investors who link the dollar’s weakness to growing distrust regarding the U.S. fiscal deficit and the sustainability of its debt.