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This growth involves various trading partners, with notable increases against other currencies: the euro rose by 3% against the British pound, 6% against both the Canadian and Australian dollars, and 9% against the Chinese yuan. The main catalyst behind this surge has been the decline of confidence in the US dollar spurred by Trump's tariff policies.
The Tariff Announcement and Market Reactions
Trump’s announcement of tariffs—including a flat 10% for most imports and a 25% tax on automotive vehicles, steel, and aluminum—was intended to bolster the American economy. However, contrary to expectations, the outcome was a dramatic loss of confidence in the dollar as a secure asset.