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The repercussions extend to the U.S. dollar as well. Traditionally perceived as a safe haven, the dollar has actually depreciated over recent months, undermining the expected upward pressure from tariffs on other nations' currencies. This decline creates additional inflationary pressures and raises the risk of stoked consumer prices. Analysts note that if inflation were to rise back up to the 5% range, it not only burdens consumers further but also sets the stage for conflict between Trump and the Federal Reserve, as the former may push for tax cuts while the latter may need to implement interest rate hikes to counteract inflation.