President Trump’s tariffs may have inadvertently achieved his goal of reordering the global economy by inspiring investors to sell U.S. assets and move their money elsewhere. The world has invested heavily in America, with trillions of dollars flowing into the country each year.
The US receives nearly $2 trillion annually from foreign capital inflows, a significant increase since before the pandemic. However, the tariffs have led to a decline in the value of the US dollar, prompting investors to reconsider their investments.
The strong US dollar has been a cornerstone of global finance for decades, but recent comments from Trump’s Council of Economic Advisers suggest that it may be time to rethink this assumption. The speech portrayed the strong dollar as having negative consequences, such as reducing labor competitiveness and denting industries.
As a result, investors are looking elsewhere, particularly foreign markets which have seen significant gains in recent days. Even the S&P 500 has struggled so far this year.
While there is still interest in US assets, especially from state holders of publicly held US government debt, concerns over Treasuries being seen as tainted products are rising.
However, it’s worth noting that the US economy remains attractive to many investors and billions of dollars continue to flow into the country for investments such as auto factories and data centers.
The recent shift in global views on investing in America could have significant long-term implications for the global economic order.
Source: https://www.axios.com/2025/04/11/sell-america-trump-tariffs-bonds