In a world that is increasingly pivoting towards the multi-polar narrative, the US is now struggling to maintain its dollar diplomacy intact. While the efforts to curb de-dollarization have always been initiated by the US, Trump’s sudden tariff sprees have now cast a shadow of doubt, with analysts questioning whether such tariff moves are in sync with the US economic infrastructural health. Moreover, Trump’s tariff ordeals have started to affect the US dollar, with USD encountering heavy fluctuations in its valuation. Will the US economy be able to handle the aftermath of Trump’s bold tariff ordeals? Or will it prompt nations to pursue de-dollarization holistically? Let’s find out.

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Trump and Tariffs: What’s Happening

Donald Trump is currently pursuing an aggressive tariff policy and is busy levying tariffs on nations to bolster the US economy. In one of Trump’s recent statements, the US president stated how April 2nd is the day when America liberates itself, as it is the day when the president will be issuing reciprocal tariffs on nations.

While his strategy is solely based on bolstering the US economy and making it more productive than ever, the repercussions of his policies cannot be ignored. For instance, experts have long been stating how Trump’s aggressive tariff policies may backfire, ushering in economic instability in the domain.

“The President is right to focus on major problems like our broken border and the scourge of fentanyl, but the imposition of tariffs won’t solve these problems and will only raise prices for American families and upend supply chains.” Said John Murphy, senior vice president and head of international at the US Chamber of Commerce.

At the same time, experts have also expressed concerns over retaliatory tariffs that the US may face in the process. Other than that, issues such as supply chain disruptions and the global trade war narrative may also gain steam, battering the US and the US dollar in the process.

US Dollar Trades Low

With the US trade war fears looming over, the US dollar has lately been hitting new lows. Per the latest report by Deutsche Bank, the current US dollar status may jeopardize its reserve currency status in the long haul.

“We do not write this lightly. But the speed and scale of global shifts are so rapid that this needs to be acknowledged as a possibility,” said George Saravelos, the bank’s global head of FX strategy, in a note to clients. “It is difficult to overestimate the scale of change taking place in global economic and geopolitical relations in a matter of days.”

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10 Sectors To Be Affected If US Dollar Loses Charm Amid Tariffs

The ten sectors that may fall prey to the changing financial narratives are as follows:

• Agriculture
• Manufacturing
• Technology
• Automotive
• Retail
• Energy
• Aerospace
• Pharmaceuticals
• Construction
• Tourism

A weak US dollar due to tariffs may prompt such sectors to note supply chain issues. At the same time, it may increase local production costs, jeopardizing their target operations.

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