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Pound Surges amid Trump's Inauguration as Tariffs are Left off the Agenda

January 21, 2025

By Evans Momodu
1 minute read


The world has been closely observing the actions of newly inaugurated US President Donald Trump, particularly regarding his economic policies. However, the absence of tariffs from Trump's initial list of executive orders has provided an unexpected boost for the British pound.

The pound rose to $1.2320, marking its highest level in 10 days. While still far below the peaks seen over the last two years, this development makes purchases in dollars marginally more affordable for Britons.

Trump’s proposed 20% tariffs on imported goods were designed to encourage domestic production and stimulate the US economy. However, many economists have expressed concerns that such measures could lead to higher prices for consumers and reduced market competition, both of which could stifle economic growth.

For now, the omission of tariffs has provided relief to currency markets, signaling a potential reprieve from immediate trade disruptions. Whether tariffs resurface in Trump's future policy decisions remains to be seen, but for the moment, the pound and global trade watchers are breathing a sigh of relief.
Source: Sky news