UBS: Targeted Tariffs May Support the US Dollar

According to a report by Jinse Finance, analysts at UBS Global Wealth Management stated that, in the short term, the most favorable outcome for the US dollar would be the implementation of targeted tariffs by the United States. The deadline for reimposing higher reciprocal tariffs is approaching on July 9, following a 90-day suspension. The analysts noted that the US may impose tariffs on countries that have not made significant progress in trade agreements, while extending tariff suspensions for those that have made progress. Targeting individual countries in a trade war often strengthens the US dollar, whereas broad-based tariffs typically weaken it.