Key Facts

• The U.S. dollar has fallen roughly 10% against other major currencies since President Trump began his current term.
• The U.S. Dollar Index, a measure of the dollar's strength, saw its biggest six-month drop in over 50 years during the first half of 2025.
• A strong dollar usually makes imports cheaper and helps control inflation (the rise in prices).
• A weaker dollar makes imported goods more expensive, increasing the cost of many products.
• The weaker dollar can also make American exports (goods sold abroad) cheaper and more competitive in foreign markets.
• Economist Thomas Savidge described the impact of a weaker dollar as a "hidden tax" because it reduces what a dollar can buy.
• This dollar decline might contribute to Americans feeling that everyday items and trips are becoming less affordable.