As if tariffs aren't enough, a decline in the value of the U.S. dollar will make imported wines, spirits and beers more expensive for U.S. consumers – but foreign buyers of U.S. alcoholic beverages will find them less expensive, which may boost their sales.

The dollar, as measured by the WSJ Dollar Index, dropped 1.1% to its lowest close since April 2022. Over the last four trading days, the dollar has lost 2.6%. The WSJ Dollar Index tracks the dollar against an basket of other currencies.

Asked about the decline, President Trump said he wasn't at all concerned. As the explanation above suggests, a weakening dollar helps achieve two of his objectives, decreasing imports and expanding exports, thereby (at least in theory) narrowing the balance of payments deficit.

While it's become obvious the Trump Administration doesn't care about the alcohol beverage industry, economists say there are other concerns that have weighed on the dollar:

• No. 1 is President Trump's recent threat to take Greeenland, which irritqated U.S. allies and spurred worries foreigners might sell U.S. Treauries.
• Speculation the Treasury Department might buy Japanese yen to try to boost the Japanese currency.
• The prospect of a new Federal REserve chair who favors lower interest rates.
• Trump's threats to the Fed's independence and the expanding budget deficit

Many on Wall Street suspect Trump might favor a weaker dollar because it would boost U.S. manufacturing and exports. That view was strengthen yesterday when asked if the dollar had declined too much, Trump replied, "No, I think it's great. The value of the dollar – look at the business we're doing."