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Trump’s tariff plans could devolve into hostile trading blocs, this expert says - MarketWatch

1. Trump's tariffs may harm U.S. economy, warns IMF's Obstfeld. 2. Potential for hostile trading blocs as countries react defensively. 3. Global trade tensions could create instability for the dollar.

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FAQ

Why Bearish?

Tariffs could reduce U.S. economic growth, negatively impacting DXY performance due to lower dollar confidence.

How important is it?

Economic policies that threaten trade can significantly impact currency values, particularly the DXY.

Why Long Term?

Long-term trade tensions could persist and affect U.S. economic relations, influencing the dollar's performance.

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