Economist: If Trump implements tariffs, the dollar may rise

ChainCatcher news, according to Jinshi reports, Aviva Investors economist Vasileios Gkionakis stated in a report that if the elected U.S. President Donald Trump proposes new trade tariffs, the dollar may rise further.

He mentioned that the recent appreciation of the dollar is primarily driven by economic fundamentals, including strong U.S. economic data and favorable interest rate differentials. The contribution of tariff prospects to the dollar's rise may be much smaller.

This indicates that if these policies are implemented, there is still room for the dollar to strengthen further. Import tariffs could drive up inflation and widen the interest rate differential between the U.S. and other countries. Tariffs may also weaken market sentiment and diminish global economic growth expectations, thereby boosting the dollar's safe-haven appeal. The extent of the dollar's appreciation will depend on the scope, scale, and timing of the tariffs.