Donald Trump is all set to become the next president of the United States. Trump’s crowning is officially scheduled for January 20, 2025, marking a new era of US politics to encounter and experience. This phase is associated with many things, primarily the revival of American legacy and its lost luster and glory.
For this purpose, the president-elect has vowed to protect the US dollar at all costs. At the same time, Trump has promised to subdue forces that may erode the US dollar, including curbing the global de-dollarization processes, to ensure the longevity of the USD as an international reserve currency.
But contrary to this belief, Trump’s power-packed policies may deflate the US dollar’s value. Here’s how it may happen.
Also Read: Dogecoin To Hit $0.82: Doge To Surge 120%, Here’s When
Two Reasons Why the US Dollar May Dip Under Trump’s Rule
1. Tariffs Imposed By Trump
Trump has pledged to impose taxes on nations moving away from the dollar. The president-elect has shown a rather aggressive stance when protecting the integrity of the US dollar. The rising de-dollarization narratives have already spread globally, with multipolar policies taking the lead. Alliances like BRICS and ASEAN have already been echoing calls to derail the US dollar while actively working on a payment system that directly challenges the USD.
Such concepts have damaged the dollar’s value, causing it to plummet and dip several times in a row. This has also popularized the idea of a “dollar dump,” with countries looking forward to exploring alternatives to USD.
The Trump regime has vowed to protect the US dollar by imposing tariffs on nations moving away from the dollar. While the idea may seem lucrative initially, this may further solidify nations’ resolve, pushing them to explore alternatives to USD. The nations may opt for the latter due to the excessive tariff charge they may be compelled to pay while transacting with the US, fueling their intent to explore other “affordable” currencies up a notch. If it catches pace, this development may affect the dollar’s valuation in the long haul, causing it to plummet and dip simultaneously.
Also Read: Romania Uses Blockchain for Presidential Votes: A New Era in Elections
2. The Trump Regime Favoring the Cryptocurrency Domain
The Trump regime is pro-crypto. Trump has shown his adoration for Bitcoin several times during his electoral campaign events. Bitcoin and the cryptocurrency domain have been a leading agenda item contributing to Trump’s presidential win. However, in alternate cases, favoring the Web3 domain might be lethal for the US dollar, considering the financial tilt that this phenomenon may ultimately lead towards.
In simpler terms, the lucrative cryptocurrency push may impact investor sentiment, pushing them to explore such investments holistically. This may further impact the value of the US dollar, making it appear dull in front of the emerging crypto trends and momentum.
Also Read: Top 3 Cryptocurrencies That May Hit All-Time Highs in December