Donald Trump had vowed to protect the US dollar, but it seems that his vow is failing catastrophically, considering the decline that the American currency has been noting in 2025. The US dollar has declined 10% this year, as Trump’s aggressive trade policies continue to rattle the global economies.

Trump’s tariff regime indirectly gave birth to a renewed de-dollarization demand, sparking fears of a potential USD collapse. In the meantime, several other reasons are eroding trust in the US dollar. Here’s how Trump’s policies are eroding trust in the US dollar.

Also Read: BlackRock Says Surging US Debt Could Fuel De-Dollarization

3 Major Reasons Why the US Dollar May Lose Its Reserve Crown Under Trump’s Rule

1. Acceleration of De-Dollarization Sentiment, Again

Trump has shown a keen interest in imposing several tariffs on nations that want to trade with the US economy. His tariff policy was meant to bolster the US economy, but the opposite has happened. Several nations, including China, have started to dump US Treasury holdings for gold, showcasing a defiant stance towards the US dollar.

At the same time, China’s PBOC governor, Pan Gongsheng, has voiced support for a multipolar currency world, vying for a financial world not relying on one currency for trade. This narrative, if it becomes true, could threaten the US dollar’s autonomy in the financial world.

2. Rising US Debt and Fiscal Pressure

Trump is adamant about launching his “one big beautiful bill.” This bill, in essence, will add $5 trillion worth of money to the budget, showcasing the exorbitant price it takes to run the US economic affairs. This development has led Elon Musk to criticize Trump’s OBB bill, adding how it may reverse all efforts that DOGE had made to lower the rising US debt ceiling.

Moreover, Trump’s policies in general have taken a massive toll on the US dollar, pushing investor sentiment towards alternatives like the yuan and gold.

3. Loss of Global Trust in the US Dollar

The US dollar has now started to face a bigger economic crisis. The world at large is now focusing on a different narrative, favoring alternatives like Bitcoin, gold, and the Chinese yuan, as the dollar continues to portray a wobbly stance.

Also Read: CPEC’s De-Dollarization Strategy Powers Belt & Road Push in Asia

Trump is once again thinking of levying 10% tariffs on BRICS nations if they continue to engage in “anti-American policies.” The current stance of the US president is once again sparking active de-dollarization drives, spreading an air of reluctance within the financial sphere of the world.