How do tariffs impact exchange rates?

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2026-03-21 22:30

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Tariffs can affect exchange rates by influencing the demand for a country's currency. When a country imposes tariffs on imports, it can lead to a decrease in demand for that country's goods, which can weaken its currency. This is because lower demand for a country's goods can result in less need for its currency, causing its value to decrease relative to other currencies.

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