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US Dollar Keeps Falling as Trump’s Tariffs Rattle Investors

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US Dollar Keeps Falling as Trump’s Tariffs Rattle Investors

The U.S. dollar extended its slide against other major currencies on Monday, the latest sign that investors may be starting to shun what has long been the safest haven in global financial markets.

An index that tracks the dollar against a basket of major trading partners fell for a fifth straight day, even as U.S. stocks and bonds rallied. The dollar has fallen by roughly 8 percent this year, trading near a three-year low.

There has been a particularly steep decline since President Trump announced tariffs on nearly every country’s imports a few weeks ago. The dollar has lost value against the euro, the yen, the pound and a host of other currencies, making imports from those countries more expensive for Americans, even before tariffs are applied.

Investors and many of Mr. Trump’s advisers had expected the dollar to strengthen as tariffs were put in place, given the conventional wisdom that the levies would discourage Americans from purchasing imported goods and in turn reduce the demand for foreign currency. Scott Bessent, the Treasury secretary, argued that the dollar’s appreciation would be significant enough to offset a rise in inflation.

In an interview with Bloomberg on Monday, Mr. Bessent sought to push back on concerns about the recent weakening of the dollar, saying it was still “strong” and the “global reserve currency.”

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But the magnitude of the tariffs that Mr. Trump has announced has been more substantial than many expected, unleashing turbulence acute enough to raise questions about whether U.S. assets have lost their luster. On multiple days in recent weeks, when the dollar was selling off, so were U.S. stocks and government bonds, a combination that Krishna Guha, vice chairman at Evercore ISI, described as “rare, ugly and worrying.”

In part, the turmoil reflects the confusion about Mr. Trump’s plans for tariffs. Mixed messages about exemptions and pauses, and which products and countries might be hit with new tariffs, have rattled investors who have long seen dollar-denominated assets like U.S. Treasury bonds as the surest thing in finance.

“Both institutional investors and central banks are having to begin to think about what would happen should the dollar and the Treasury market no longer be the safe haven,” said Joe Brusuelas, chief economist at the consulting firm RSM.

Sharp moves in the value of the dollar can have a destabilizing effect on the global economy, because it serves as a central pillar of the financial system. The dollar is on one side of nearly 90 percent of all foreign-exchange trades, according to the Bank for International Settlements, from Americans abroad using their credit cards to large corporations making billion-dollar takeovers. Essential commodities, like oil, are also typically priced in dollars, regardless of who is buying or selling.

Brad Setser, a senior fellow at the Council on Foreign Relations who previously worked at the Treasury Department, said there were reasons not to read too much into the dollar’s sell-off.

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For nearly a decade, U.S. assets have been among the best performers in the world — consider the “Magnificent Seven” tech stocks that propelled the S&P 500 and Nasdaq to a series of record highs.

“A lot of the money coming into the U.S. hasn’t been coming to the U.S. seeking safety. It’s been coming to the U.S. seeking yield and chasing the run-up in U.S. equities,” he said.

“In that context,” he added, “when there’s a general move to reduce risk — because the world certainly seems a lot riskier after Trump’s tariff announcement — some of that money that was betting on U.S. outperformance and the U.S. continuing to offer outsized returns is being unwound.”

Economists now see much higher odds of a recession in the United States because of escalating trade tensions. That may mean the Fed will be compelled at some point to start lowering interest rates to protect the labor market. Lower rates make holding dollar-denominated assets less appealing, which could put more pressure on the currency. While the bar for future cuts appears high given that inflation is poised to rise as growth slows, signs that the economy is hurtling toward a recession could change the central bank’s approach.

If that transpired, Christopher J. Waller, a Fed governor, would support cutting rates “sooner and to a greater extent” than initially expected, he said on Monday. In a speech, he also acknowledged the turbulence caused by Mr. Trump’s tariffs, saying it was an “understatement to say that financial markets did not respond well” to them.

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The dollar would be destabilized further if Mr. Trump sought to undermine the independence of the Fed, which sets interest rates free from political influence. Mr. Bessent said on Monday that monetary policy was a “jewel box that’s got to be preserved.”

Mr. Trump will have a chance to pick a new chair of the Fed after Jerome H. Powell’s term expires in May 2026. The administration will begin that process in the fall, Mr. Bessent said.

But even Mr. Setser acknowledged that there might be something more fundamentally worrying to the dollar’s slide than simply a shift in expectations about the economic outlook.

“It is not crazy to think that after a period of exceptional policy volatility in the United States and with real risk of recession, that some foreign investors might wonder whether they should continue to put an ever increasing amount of money into the United States,” he said.

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Video: Why Your Paycheck Feels Smaller

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Video: Why Your Paycheck Feels Smaller

new video loaded: Why Your Paycheck Feels Smaller

Ben Casselman, our chief economics correspondent, explains why wages are not keeping up with inflation and what that means for American workers and the economy.

By Ben Casselman, Nour Idriss, Sutton Raphael and Stephanie Swart

April 18, 2026

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Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial

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Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial

Nearly two years after actor Alec Baldwin was cleared of criminal charges in the “Rust” movie shooting death, a long simmering civil negligence case is inching toward a trial this fall.

On Friday, a Los Angeles Superior Court judge denied a summary judgment motion requested by the film producers Rust Movie Productions LLC, as well as actor-producer Baldwin and his firm El Dorado Pictures to dismiss the case.

During a hearing, Superior Court Judge Maurice Leiter set an Oct. 12 trial date.

The negligence suit was brought more than four years ago by Serge Svetnoy, who served as the chief lighting technician on the problem-plagued western film. Svetnoy was close friends with cinematographer Halyna Hutchins and held her in his arms as she lay dying on the floor of the New Mexico movie set. Baldwin’s firearm had discharged, launching a .45 caliber bullet, which struck and killed her.

The Bonanza Creek Ranch in Santa Fe, N.M. in 2021.

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(Jae C. Hong / Associated Press)

Svetnoy was the first crew member of the ill-fated western to bring a lawsuit against the producers, alleging they were negligent in Hutchins’ October 2021 death. He maintains he has suffered trauma in the years since. In addition to negligence, his lawsuit also accuses the producers of intentional infliction of emotional distress.

Prosecutors dropped criminal charges against Baldwin, who has long maintained he was not responsible for Hutchins’ death.

“We are pleased with the Court’s decision denying the motions for summary judgment filed by Rust Movie Productions and Mr. Baldwin,” lawyers Gary Dordick and John Upton, who represent Svetnoy, said in a statement following the hearing. “He looks forward to finally having his day in court on this long-pending matter.”

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The judge denied the defendants’ request to dismiss the negligence, emotional distress and punitive damages claims. One count directed at Baldwin, alleging assault, was dropped.

Svetnoy has said the bullet whizzed past his head and “narrowly missed him,” according to the gaffer’s suit.

Attorneys representing Baldwin and the producers were not immediately available for comment.

Svetnoy and Hutchins had been friends for more than five years and worked together on nine film productions. Both were immigrants from Ukraine, and they spent holidays together with their families.

On Oct. 21, 2021, he was helping prepare for an afternoon of filming in a wooden church on Bonanza Creek Ranch. Hutchins was conversing with Baldwin to set up a camera angle that Hutchins wanted to depict: a close-up image of the barrel of Baldwin’s revolver.

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The day had been chaotic because Hutchins’ union camera crew had walked off the set to protest the lack of nearby housing and previous alleged safety violations with the firearms on the set.

Instead of postponing filming to resolve the labor dispute, producers pushed forward, crew members alleged.

New Mexico prosecutors prevailed in a criminal case against the armorer, Hannah Gutierrez, in March 2024. She served more than a year in a state women’s prison for her involuntary manslaughter conviction before being released last year.

Baldwin faced a similar charge, but the case against him unraveled spectacularly.

On the second day of his July 2024 trial, his criminal defense attorneys — Luke Nikas and Alex Spiro — presented evidence that prosecutors and sheriff’s deputies withheld evidence that may have helped his defense . The judge was furious, setting Baldwin free.

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Variety first reported on Friday’s court action.

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California’s gas prices push Uber and Lyft drivers off the road

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California’s gas prices push Uber and Lyft drivers off the road

The highest gas prices in the country are making it tougher for some gig drivers to make a living.

Gas prices have shot up amid the war in the Middle East. On average, California gas prices are the most expensive in the United States, according to data from the American Automobile Assn. The average price of regular gas in California is almost $6. The national average is a little above $4.

While Uber and Lyft drivers have concocted clever ways to cut gas consumption, they say that without some relief they will be forced to leave the ride-hailing business.

John Mejia was already struggling to make money as a part-time Lyft driver when soaring gas prices made his side hustle even harder.

“Unfortunately, it’s the economics of paying less to drivers and gas prices,” he said. “It actually is pulling people out of the business.”

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Guests at The Westin St. Francis hotel get into an Uber.

(Jess Lynn Goss / For The Times)

Gig work offers drivers the freedom to work for themselves and more flexibility, but being independent contractors also means they must shoulder unexpected costs.

Ride-sharing companies say they’re trying to help, but drivers say the gas relief comes with caveats. For now, drivers say they’re being pickier about what rides they accept, cutting hours and are looking at other ways to make money.

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Mejia, who started driving for Lyft more than a decade ago, said in his early days, he would sometimes make $400 in three hours. Now it takes 12 hours to rake in $200.

The San Francisco Bay Area consultant is an active member of the California Gig Workers Union, so he knows he isn’t alone. California has more than 800,000 gig rideshare drivers, according to the group, which is affiliated with the Service Employees International Union.

On social media sites such as Reddit and Facebook, gig workers have posted about how the higher gas prices are eating into their earnings. Among the tricks they are suggesting: reducing the number of times the ignition is turned on or off, avoiding traffic, working in specific neighborhoods and at times with high demand and switching to electric vehicles.

Gig drivers usually have only seconds to decide whether to accept a ride on the app, but they have become more strategic about which rides and deliveries they accept.

That means they are more likely to sit back in their cars and wait for higher fares for quick pick-up and drop-off.

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“I highly recommend the ‘decline and recline’ strategy, rejecting unprofitable rides until a better one appears,” wrote Sergio Avedian, a driver, in the popular blog the Rideshare Guy.

Pedestrians cross the street in front of a Lyft and Uber driver.

Pedestrians cross the street in front of a Lyft and Uber driver on Wednesday. High gas prices have made it hard for gig drivers to make a living, cutting into their profits.

(Jess Lynn Goss / For The Times)

Uber, Lyft and other companies have unveiled several ways to help drivers save on gas.

Uber said drivers can get up to 15% cash back through May 26 with the Uber Pro card, a business debit Mastercard for drivers and couriers. Based on a worker’s tier, they can get up to $1 off per gallon of gas through Upside — an app that offers cash rewards — and up to 21 cents off per gallon of gas with Shell Fuel Rewards. The company also offers incentives for drivers who want to switch to electric vehicles.

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“We know the price of gas is top of mind for many rideshare and delivery drivers across the country right now,” Uber said in a blog post about its gas savings efforts.

Lyft also said it’s expanding gas relief through May 26 because the company knows that the extra cost “hits hardest for drivers who depend on driving for their income.”

The company is offering more cash back, depending on the driver’s tier, for drivers who use a Lyft Direct business debit card to pay for gas at eligible gas stations. They can get an additional 14 cents per gallon off through Upside.

Drivers say the fine print on the offers dictates which card they use and where they fill up gas, making it difficult for them to save money.

“If I do the math, it’s ridiculous,” Mejia said. “They’re offering us nothing.”

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Uber declined to comment, but pointed to its blog post about the gas relief efforts. Lyft also referenced the blog post and said “the gas savings were structured through rewards to maximize stackable opportunities.”

Guests at The Westin St. Francis hotel get into an Uber.

Guests at The Westin St. Francis hotel get into an Uber.

(Jess Lynn Goss / For The Times)

Gig workers have struggled with rising gas prices in the past.

In 2022, Lyft and Uber temporarily added a surcharge to their fares amid record-high gas prices following Russia’s invasion of Ukraine. This year, Uber is adding a fuel charge to its fares in Australia for roughly two months to offset the high cost of gas for drivers. Lyft said it hasn’t added a fuel charge in the U.S. or elsewhere.

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Margarita Penalosa, who drives full time for Uber and Lyft in Los Angeles, started as a rideshare driver in 2017. Back then, gas was cheaper. She would easily hit her goal of making $300 in eight hours. Now she’s making just $250 after working as much as 14 hours.

Gas prices, she said, used to be less than $3 per gallon. Now some gas stations are charging more than $8 per gallon.

“Take out the gas. Take out the mileage from my car and maintenance. How much [do] I really make? Probably I get $11 for an hour,” she said.

Jonathan Tipton Meyers wants to spend fewer hours as a rideshare driver.

He already juggles multiple gigs even while driving for Uber and Lyft in Los Angeles. He’s a mobile notary and loan signing agent, a writer and performer.

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Driving is “a very challenging, full-time job,” he said. “It’s very taxing and, of course, wages were just continually decreasing.”

A man stands for a portrait in a white button up shirt

John Mejia, a longtime Lyft and Uber driver, poses for a portrait before attending a meeting about unionizing gig drivers.

(Jess Lynn Goss / For The Times)

Even if oil continues to flow through the Strait of Hormuz, which Iran reopened Friday, it could take a while for gas prices to come down to earth, said Mark Zandi, the chief economist at Moody’s Analytics.

“There’s an old adage that prices rise like a rocket and fall like a feather,” he said. “I think that’ll apply.”

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In the meantime, it will be survival of the fittest drivers. If enough of them decide to leave the apps, the ride-hailing companies could be forced to raise fares further to attract some back.

“Those who approach rideshare driving strategically, tracking expenses, choosing trips carefully, and optimizing efficiency are far more likely to weather periods of high gas prices,” wrote Avedian in the Rideshare Guy blog. “For everyone else, a spike at the pump can quickly turn rideshare driving from a side hustle into a money-losing venture.”

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