Pushing the USD’s limits – DBS
|Donald Trump's tariff policies and protectionist agenda pose long-term risks to the US dollar, destabilizing financial markets and eroding trust in American institutions that have supported the dollar’s dominance, DBS' FX analyst Philip Wee notes.
Trump's tariffs threaten Dollar stability
"The USD faces long-term downside risks due to Trump’s 'Make America Great Again' agenda, particularly his tariff proposals. These have shaken investor confidence in US economic strength, institutional trust, and geopolitical influence, threatening the USD’s dominance."
"Trump’s tariffs are expected to slow US GDP growth and increase recession risks, as businesses delay investments and consumers face higher prices and job uncertainty. The trade war with China has also lowered global growth projections, further undermining economic stability."
"Trump’s actions have eroded trust in US institutions, including the Federal Reserve’s independence, which may lead to increased political interference in monetary policy. Additionally, the administration's fiscal policy, including the push for tax cuts and deregulation, raises concerns about the sustainability of US economic foundations."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.