The US dollar, a stable currency for most of modern financial history, may be losing its footing. A combination of factors, including a declining relationship between stocks and government bonds, has led to increased uncertainty about the dollar’s value.
Under President Donald Trump’s economic policies, American companies are shifting away from investing in China, instead turning towards other countries such as South-East Asia. This “reshoring” trend not only impacts global trade but also creates new challenges for policymakers.
European policymakers see an opportunity to strengthen their economies, particularly with the dollar faltering. As the US withdraws from global trade agreements and imposes tariffs on certain countries, the euro is gaining prominence. With Trump’s America taking shape, the world’s financial landscape is undergoing significant changes, making it essential to monitor these developments closely.
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Source: https://www.economist.com/finance-and-economics/2025/04/16/how-trump-might-topple-the-dollar