Donald Trump has assumed the White House duties as the 47th US president, ushering in an era of complete policy changes. Trump is adamant about imposing tariffs on nations to strengthen the US economy. While his intent is solely focused on bolstering the US economic infrastructure, his idea of imposing tariffs on nations is gaining widespread notoriety, with the de-dollarization hype gaining traction in the midst of it all. While the US dollar still stands as a primary transacting currency, can the dollar ever be replaced? If yes, then which currencies have the power to be the global superpower? Let’s find out.

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The Concept of De-Dollarization to Gain Momentum Again?

Donald Trump is once again grabbing the central spotlight due to the spree of tariffs that he wishes to levy on certain nations. As per Reuters, Trump is planning to impose a 10% levy on Canadian crude oil, followed by a 25% levy on Mexican crude oil starting from March 2025. At the same time, Trump is planning to impose 25% tariffs on steel, semiconductors, and automobile sectors, inviting an array of responses from across the world.

In the middle of this, Trump’s tariff spree is signaling a brewing trade war on the horizon, which may have critical consequences ahead. Ulrich Leuchtmann, Commerzbank AG strategist, earlier shared how Trump’s dollar dominance plan could bode heavy results for the nation to deal with later. The move can result in nations finding alternatives to the USD, spelling trouble for the American currency in the long run.

“Trump now wants to change that and force dollar dominance. That changes everything. “If the US were to impose prohibitive tariffs across the board. They would cause massive disruption to the global economic system.” Leuchtmann wrote

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Can USD Be Replaced?

Per Meta AI, three credible currencies have the power to replace the US dollar. For instance, the euro is one such currency that can replace the USD. It’s the second most widely held currency, making it a great alternative asset to consider in the long run.

The AI refers to the Renminbi/Yuan as the second currency that has the power to replace the US Dollar. The portal touts China’s growing economic power and RMB’s involvement in international transactions as reasons spearheading its popularity.

Also, digital assets such as Bitcoin and CBDCs are posing as great alternatives to the US dollar. Bitcoin boasts a stellar reputation for being fast and efficient, making it a viable contender in the ongoing currency war.

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