The Trump administration’s plan to strengthen the dollar’s global standing raises questions about its effectiveness in boosting competitiveness in international trade. On one hand, a strong dollar provides a safe haven for investors and lowers the cost of borrowing, leading to more investment, growth, and higher incomes. However, this strength also hinders competitiveness in trade.
The administration aims to strike a balance between these two benefits by manipulating the dollar’s value without causing long-term interest rates to rise. Chairman of the Council of Economic Advisers Stephen Miran outlines a strategy to achieve this by altering international trade and finance terms using US power.
Source: https://www.bloomberg.com/opinion/articles/2025-07-15/us-dollar-s-exorbitant-privilege-may-end-with-trump-administration