Goldman Sachs Sees Sharp Dollar Drop as Trade Tensions Undermine Confidence

Goldman Sachs warns that the U.S. dollar could drop significantly as aggressive tariffs and slowing economic growth erode global confidence.

The bank’s latest report links the dollar’s vulnerability to weakening GDP, reduced foreign investment, and growing uncertainty over trade policy. Senior strategist Michael Cahill emphasized that tariffs threaten U.S. firms’ profits and consumer incomes—key drivers of the dollar’s strength. Goldman projects a 10% drop against the euro and 9% against the yen and pound over the next year.

As foreign producers gain pricing power, the U.S. may bear higher import costs, further pressuring the dollar’s value.

Clever Robot News Desk 21^th April 2025