Source: Fortune
Summary
The US dollar has fallen about 10% against major currencies since President Donald Trump took office, potentially impacting affordability for Americans. A weaker dollar can increase prices on foreign goods but boost American exports. Big multinationals like Philip Morris and Coca-Cola have benefited from the decline, but smaller companies are more susceptible to the turbulence. The dollar’s fall can also impact American consumers, particularly during foreign travel or when making purchases from international sellers.
Our Reading
The numbers tell one story.
Corporate earnings calls have been peppered with talk of how a weaker dollar has helped companies like Philip Morris and Coca-Cola. Trump has suggested a strong dollar puts the US at a disadvantage, and that a weak dollar helps American industry. Smaller companies like LobsterBoys and Gentell are paying more to import goods and may need to raise prices. The dollar’s decline has also impacted American consumers, particularly during foreign travel or when making purchases from international sellers.
It’s a hidden tax, and the consumer will always pay.
Author: Evan Null
