US Dollar Index Rises Above 97.00 as Trump Threatens Extra BRICS Tariff

US Dollar Index Rises Above 97.00 as Trump Threatens Extra BRICS Tariff

Risk-Off Sentiment Lifts the Greenback on Geopolitical Trade Concerns

The US Dollar Index (DXY) rose to 97.10 in the early Monday Asian session, as markets reacted to President Donald Trump’s announcement of a 10% additional tariff on countries aligning with BRICS. The move has sparked renewed risk-off sentiment, boosting demand for the US Dollar.

Trump declared on social media that:

"Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be NO exceptions to this policy."

Tariff Timeline Confirmed for August 1

Commerce Secretary Howard Lutnick confirmed the tariffs will go into effect on August 1, emphasizing that Trump is finalizing 12 to 15 tariff letters to be sent to various trading partners. The countries involved remain unnamed, though trade deals or letters are expected to be completed by July 9.

US Treasury Secretary Scott Bessent added that tariffs will revert to April 2 levels unless progress is made on new trade agreements. He noted August 1 is not a new deadline, but rather a pressure point for ongoing negotiations.

"Big Beautiful Bill" Boosts USD Sentiment

President Trump also signed into law what he called the “Big Beautiful Bill”—a sweeping package of tax cuts and spending reductions aimed at stimulating the US economy. The legislation is seen as USD-positive in the short term, further helping the Dollar regain lost ground.

For continued updates on the DXY and tariff impacts, follow Tredu’s Currency Tracker.

Key Takeaways

• DXY climbs to 97.10 in Asian trading after Trump’s BRICS tariff threat.
• 10% tariff to apply to BRICS-aligned nations, with no exceptions.
• August 1 confirmed as effective date for multiple new tariff actions.
• Trump signs major tax cut and spending bill, further supporting USD.