Here's a potential winner from the Trump tariffs: American tourists traveling abroad
Published On Feb 14, 2025, 2:00 PM
Due to President Trump's tariff policy, economists anticipate that the U.S. dollar will strengthen further in 2025, giving American tourists traveling abroad more purchasing power. This increase in dollar strength is expected as tariffs on foreign imports are implemented, which could weaken other currencies like the euro. As a result, travelers might find that their dollar stretches further for expenses such as lodging and dining in foreign countries. The trend is supported by recent increases in the U.S. dollar indexes, indicating a continuing bullish forecast for the dollar against other currencies.
Stock Forecasts
UUP
Positive
The strengthening of the U.S. dollar could present a favorable environment for investments in dollar-denominated assets, while potentially impacting foreign stocks negatively due to currency depreciation. Investors may look to capitalize on the dollar's rise and its positive effects on American tourism-related stocks or ETFs.
Related News
Morgan Stanley revises Fed rate cut forecast amid tariff uncertainty
Feb 5, 2025, 5:18 AM
Peers Goldman Sachs and Wells Fargo continue to expect two interest rate cuts this year. President Trump's tariff policy is expected to drive up inflation and will increase pressure on the U.S. central bank as it looks to control persistent inflationary pressures.
Asian markets tumble as Trump's tariff war escalates
Feb 2, 2025, 10:01 PM
Investors are bracing for a potential trade war that could hit the earnings of major companies.
Stock market today: Dow, S&P 500, Nasdaq stumble as Trump recommits to sweeping tariffs on Saturday
Jan 31, 2025, 4:06 PM
Solid results from Apple are buoying spirits, as investors brace for PCE inflation and weigh Trump's renewed tariff threat.