U.S. Dollar Slips Ahead of Tariff Deadline Amid Debt Concerns

The U.S. dollar weakened against major currencies due to concerns over President Donald Trump's impending tariff announcements and growing fiscal deficits, despite strong jobs data. Trump announced that his administration would start sending letters specifying new tariffs to various countries, with a July 9 deadline for reciprocal tariffs to take effect, raising uncertainty in global markets. The House narrowly passed Trump's $3.4 trillion tax and spending bill, which is expected to add significantly to the national debt and contribute to reduced demand for U.S. debt and the dollar. While U.S. stocks reached record highs following robust payroll data, global markets showed caution amid trade tensions and tariff uncertainties. Investors remain wary about the economic impact of tariffs, with analysts noting potential adverse effects on U.S. growth and limited Federal Reserve support amid rising inflation risks. Overall, the combination of trade policy uncertainty and fiscal concerns is driving market volatility and a decline in the dollar's appeal as a safe haven.