Bank of America: Tariffs Have a More Significant Negative Impact on the US Economy and the Dollar

Analysts at Bank of America point out that compared to other countries and currencies, U.S. tariffs have a more significant negative impact on the U.S. economy and the dollar. The bank believes that tariffs could trigger retaliatory measures, and since the scale of U.S. trade with the world exceeds that of other countries' trade with the U.S., it is more susceptible to shocks. Data will determine the fate of the dollar: if U.S. economic indicators improve, investors may begin to ignore policy noise and support the dollar; however, Bank of America expects the data to be weak, as policy uncertainty has already led to a halt in corporate hiring and investment plans, compounded by persistently high tariffs. Additionally, fiscal easing may drive up borrowing costs.