Dollar Falls on Fresh Tariff Fears

2026-02-23 00:20 By Jam Kaimo Samonte 1 min. read

The dollar index fell below 97.5 on Monday, trimming last week’s gains after President Donald Trump said he plans to raise global tariffs from 10% to 15%, following a decision by the Supreme Court to strike down his “reciprocal” tariffs.

Meanwhile, Europe’s trade chief said Sunday he would propose suspending ratification of a trade agreement with the US, while India delayed negotiations to finalize an interim deal with Washington.

Still, US Trade Representative Jamieson Greer said trade arrangements with key partners, including China, the EU, Japan and South Korea, would remain in force.

Markets initially welcomed Friday’s court ruling, but mounting uncertainty over Trump’s next steps overshadowed any potential benefits from lower tariff rates and possible reimbursements.

The dollar typically weakens during periods of heightened policy uncertainty in Washington, as foreign investors scale back exposure to US assets.



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