Former President Donald Trump\u2019s bold “Liberation Day” plan to implement universal tariffs could mark a turning point for the US dollar\u2019s dominance as the world\u2019s ultimate safe-haven currency, warns Nigel Green, CEO of deVere Group, one of the largest independent financial advisory firms.<\/p>\n\n\n\n
Green’s warning comes as Trump prepares to impose an unprecedented wave of tariffs on foreign goods, a move he claims will spark a major economic resurgence in the United States. The proposed measures could have significant implications for global trade, market stability, and the US dollar\u2019s role in the international financial system.<\/p>\n\n\n\n
\u201cThe sweeping, universal tariffs on all US imports, unveiled in a defiant announcement from the White House, marks a sharp escalation in global trade tensions and a radical departure from decades of open-market policy,\u201d notes Nigel Green.<\/p>\n\n\n\n
\u201cThe dollar may spike in the short term, as investors react to the shock by retreating into what they think is safety.<\/p>\n\n\n\n
\u201cBut the nature of this ballooning crisis is different. The threat is coming from inside the US, and the dollar\u2019s safe-haven status might not hold under sustained inflation, weakening real yields, and growing distrust in American economic leadership.\u201d<\/p>\n\n\n\n
Universal tariffs reduce imports, and by extension, the demand for foreign currencies. That can lift the dollar\u2014at least mechanically. In the early stages of the announcement, the dollar strengthened against emerging market currencies and commodity-linked peers, as global risk aversion took hold.<\/p>\n\n\n\n
\u201cInvestors tend to reach for the dollar reflexively when things get rough. But this is a fundamentally inflationary policy that undermines the dollar\u2019s long-term strength,\u201d says Nigel Green.<\/p>\n\n\n\n
He explains that tariffs will raise costs on a broad swathe of consumer and industrial goods, feeding into higher prices across the board. <\/p>\n\n\n\n
\u201cTrump is also aggressively lobbying for interest rate cuts. So, we\u2019re looking at a weaker growth outlook combined with rising prices and political pressure on the Fed to stay dovish. That\u2019s a textbook setup for dollar weakness over the medium term.\u201d<\/p>\n\n\n\n
The dollar\u2019s reserve currency status is built not just on the size of the US economy, but on trust: trust in its institutions, in the rule of law, and in its commitment to relatively open trade. Blanket tariffs attack that foundation directly.<\/p>\n\n\n\n
\u201cIf the world begins to see the US as an unreliable trading partner, or one that uses its currency and economic size as a weapon, that changes everything,\u201dnotes the deVere CEO. <\/p>\n\n\n\n
\u201cWe could be witnessing the early stages of global moves away from the dollar as the ultimate safe-haven currency.\u201d<\/p>\n\n\n\n
Already, there are signs of strain. Central banks in China, Russia, and parts of the Middle East have been gradually reducing their reliance on US Treasuries. The rise of digital currencies and bilateral trade agreements in non-dollar denominations further suggest a slow but real shift in the global monetary order.<\/p>\n\n\n\n
As retaliation builds from Europe, China, and other major economies, the dollar could come under sustained pressure. <\/p>\n\n\n\n
\u201cIf real yields fall, trust erodes, and America is seen as the source\u2014not the shield\u2014of global instability, we believe the dollar could begin to lose its unique safe-haven advantage,\u201d affirms Nigel Green.<\/p>\n\n\n\n
\u201cInvestors must position accordingly. Holding only USD-based assets or assuming the dollar will always outperform in a crisis is no longer a viable strategy.\u201d<\/p>\n\n\n\n
The deVere CEO concludes: \u201cTariffs will bite. Inflation will rise. And if the rest of the world sees the US abusing its monetary power and abandoning open trade principles, the shift away from the dollar will accelerate. <\/p>\n\n\n\n
\u201cThis could be an historical turning point for the US currency.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Former President Donald Trump\u2019s bold “Liberation Day” plan to implement universal tariffs could mark a turning point for the US dollar\u2019s dominance as the world\u2019s ultimate safe-haven currency, warns Nigel Green, CEO of deVere Group, one of the largest independent financial advisory firms. Green’s warning comes as Trump prepares to impose an unprecedented wave of<\/p>\n","protected":false},"author":50,"featured_media":161338,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3564,53391],"tags":[63700,26537,63701,44958],"class_list":{"0":"post-161333","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"category-stock-market","9":"tag-liberation-day","10":"tag-trump","11":"tag-universal-tariffs","12":"tag-us-economy"},"yoast_head":"\n