Dollar Breaks Below 100: Trump Tariffs Plunge America into Crisis

Trump's self-inflicted crisis is now threatening to collapse the US dollar.

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Market Update: The US Dollar Index has dropped below the 100 benchmark (currently at 99.985), falling 0.62% as Treasury yields rise and international markets react to recent tariff announcements. This decline indicates a weakening of the dollar against foreign currencies, and unlike previous dips, recovery is uncertain.

How did we get here?

Predictions Unfolding

We recently analyzed how Trump's tariff policies could threaten the US dollar's status as the world's primary reserve currency and potentially plunging the US$ into freefall. The recent drop isn't suggesting an imminent collapse but suggests significant challenges ahead. The dollar has fallen over 7% since Trump's inauguration, with more than 2% of that loss occurring after his latest tariff announcement.

The US$ leadership may also be its downfall

World VS Trump

Stock, bond, and dollar values are being pressured simultaneously, indicating that foreign investors and holders of US debt are shedding their positions in US assets. The dollar has declined notably against safe-haven currencies like the yen and franc, while currencies such as the Canadian dollar have remained stronger. This shift reflects reactions to aggressive tariff policies, affecting major US debt holders and leading to diminished dollar exposure.

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