US dollar strengthens on Trump’s tariff agenda

The US dollar strengthened today, Feb. 19, after a new threat from US President Donald Trump to impose tariffs on autos and chips, amid investor attention on the Ukraine peace talks that began yesterday between Washington and Moscow.

The US Dollar Index – which measures the greenback’s value against six major currencies – appreciated 0.12% to 107.19 points at 3:15 pm Makkah time.

The euro fell by 0.17% to $1.0427, and the British pound declined by 0.24% to $1.2581, while the Swiss franc held steady at $1.1061.

The US dollar depreciated against its Japanese counterpart by 0.19% to 151.76 yen. It, however, appreciated against its Chinese counterpart in the international trading market by 0.14% to 7.2859 yuan.

This occurred against the backdrop of risks of a global trade war due to the protectionist policies of Trump’s administration, including his imposition of tariffs on China, Canada, and Mexico, as well as a 25% tariff on imports of steel and aluminum.

Moreover, Trump said in a press statement yesterday that he plans to impose tariffs of about 25%—potentially increasing over the course of a year—on his country’s imports of cars, chips, and pharmaceutical products such as medicines.

In addition, tensions have arisen between Washington and Brussels following the US administration’s initiation of discussions with Russia on an imminent end to the Ukraine war, without involving Kyiv or representatives from the European Union.