American hegemony faces an accelerated collapse due to President Trump’s tariff policies, and it’s happening right now, warns former Labor Secretary Robert Reich. The Trump tariffs are triggering a dollar decline that could end the US reserve currency status sooner than expected, also creating massive global economy impact as investors flee Treasury bills and US assets.

Also Read: The US Dollar Became America’s Biggest Liability: 88% Rule at Risk

Trump Tariffs, Dollar Decline, And The Fall Of US Global Power

Investors Abandon U.S. Assets As Trust Erodes

American hegemony is already showing cracks, and global investors are pulling money from US Treasury bills following Trump’s tariff announcements. This dollar decline represents more than just market volatility – it also signals a fundamental shift in global confidence right now.

During a recent episode of “The Bottom Line,” Reich warned that when global investors, including Americans, started pulling their money out of Treasury bills and away from US dollars after the tariffs were announced, America’s standing in the world may have wavered.

The Trump tariffs that were designed to protect American interests are instead undermining the reserve currency status that has been the foundation of American hegemony for decades.

Economic Free Ride Ending With Policy Mistakes

The current global economy impact stems from decades of privileged economic positioning that’s now at risk. The dollar’s reserve currency status has provided Americans with unprecedented advantages.

Reich stated:

“Having the dollar be the reserve currency helps all of us Americans here because we get, in a sense, a free ride. We get the benefits of the rest of the global economy investing in us.”

But Trump tariffs are destroying this system, and Reich questions why any administration would accelerate the end of American hegemony. The dollar decline threatens to eliminate benefits most Americans don’t even realize they receive.

Also Read: Pi Coin Price Prediction: $600 Investment Could Make You a Mini-Whale by 2030

Lower Income Americans Bear Heaviest Burden

Trump tariffs function as a regressive tax system, hitting working families hardest while threatening the reserve currency foundation of prosperity. This double impact makes the global economy impact particularly devastating for vulnerable populations.

Reich explained:

“Every consumer, effectively, is poorer. It is a regressive tax in the sense that consumers who have lower incomes have to pay a larger portion of their incomes in the form of this tariff tax.”

As American hegemony weakens and the US dollar decline continues, these families face both higher costs and reduced economic stability that the current system has historically provided.

Also Read: Currency News Today: US Dollar Is On Its Way Down, Says Analyst

The warning signs are clear: American hegemony could end much sooner than anticipated if current policies continue undermining the reserve currency status and accelerating dollar decline.