The U.S. dollar has dropped about 10% against a basket of other major currencies since early 2025. That shift is starting to show up in everyday costs: A weaker dollar means Americans get less when traveling abroad and may pay more for imported goods like food, fuel and electronics. Economists say the effect on prices is usually modest, but it can add up, particularly when stacked on other factors, including inflation, tariffs and a spike in fuel costs due to the Iran war. President Donald Trump has openly supported a weaker dollar, arguing it helps American industry, and some executives agree, saying it's boosted overseas business.

The Iran war’s most tangible and immediate effect for many people outside the Middle East has been spiking gasoline prices. But crude oil isn’t just refined as fuel. Petrochemicals derived from oil and natural gas go into making more than 6,000 consumer products. A list produced by the U.S. Department of Energy includes everyday items ranging from computer keyboards, lipstick, tennis rackets and chewing gum to aspirin, umbrellas and nylon guitar strings. Petroleum derivatives also are used in a lot of product packaging. Shoe and apparel trade groups and companies that sell stuffed animals, home products and medical supplies are looking at price increases or other ways to offset higher materials costs.