The power of the U.S. dollar is volatile, falling for a third day against several currencies on May 21. American tariffs are anticipated to further take a toll on U.S. currency values. According to European nonprofit organization CEPR, which provides policy-relevant research based in economic theory, prevailing theory holds that import tariffs should place upward pressure on the tariff-imposing country’s currency.

“If global trade is largely invoiced in a dominant currency such as the U.S. dollar,” Jonathan Hartley and Alessandro Rebucci wrote in Tariffs, the Dollar and Equities: High-Frequency Evidence from the Liberation Day Announcement, “the response should be amplified, leading to an even sharper initial appreciation of the home currency.”

That said, President Donald Trump’s tariff policies are a major factor in the fall and fluctuation of the U.S. Dollar Index, which had tumbled to 97.9 in late April—the lowest in slightly more than three years. (At the time of publication, the dollar index is at 99.49 amid the three-day decline.) At the same time, the Euro and the Japanese yen strengthened against the dollar, reports Reuters.

What exactly does this mean for travelers making their summer plans?

The 2025 Bankrate Summer Travel Survey found that less than half of Americans even have summer travel plans, with 65 percent of that number citing affordability as the main issue. Of those surveyed, just 46 percent plan to travel at all, with 38 percent choosing domestic locations and 15 percent going international with a margin of overlap.

Moreover, the survey found that a quarter of U.S. adults aren’t planning any summer vacation at all.

“It’s getting even more expensive,” Uri Kogan, a frequent traveler based in the San Francisco Bay Area, said. “We just went to London last week, so it was on my mind.”

If you’re looking to travel, Bankrate senior industry analyst Ted Rossman said to book sooner rather than later. “It also pays to zig when others zag,” Rossman said in the survey. “For example, think about visiting a destination during its shoulder season or offseason. Take an early flight or a late flight or a connecting flight—or fly midweek.”

In addition, if you’re making summer travel plans, you’re going to want to take the volatility of the U.S. dollar into account before going into debt for that beach vacation. While no one truly knows whether conditions will improve or deteriorate, many experts are leaning toward the latter. That’s why it’s going to be important—as Rossman suggests—to shore up payments on the earlier end.

However, Rossman said don’t let all this deter you from taking time to yourself. “Don’t let your vacation time go unused,” he said in the survey. “If nothing else, take some time off to relax and recharge at home.”