Donald Trump’s latest tariff policies have attracted significant attention from across the world. Trump has gained widespread criticism for his over-the-top tariff policies that have led the US dollar to bear the brunt of it all. Moreover, the US president’s spree of tariffs has weakened investors’ faith in the US dollar, leading the USD to depreciate against major currencies. During his pre-election campaigns, Trump vowed to protect the US dollar with all his might, but that idea seems to have backfired now. In the end, Trump’s tariffs have weakened the US dollar to the core, powering up other currencies like the Chinese yuan in the process.
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Trump Ended Up Strengthening the Chinese Yuan: Here’s How
The world vividly remembers the liberation day announcement and the ominous spree of tariffs that shook the world. These announcements carried a sense of heaviness, loaded with tariffs and payments that the world must pay to do business with the United States. Trump’s intent was crystal clear, even honest to a certain extent. His idea was intended to bolster the US economy by bolstering the local manufacturing narrative. But somewhere in between, these tariffs backfired, adding more pressure on the US economy. As a result, the US dollar nosedived, and the USD-backed assets plunged as investors pivoted towards Bitcoin and gold.
In short, the US dollar became fragile to begin with. US tariff orders also helped the de-dollarization momentum gain momentum again. Apart from this, Trump’s policies have greatly helped China to strengthen its currency, with the yuan topping the charts as of late. According to a Financial Times Renminbi report, the Chinese currency is the strongest against the USD since Donald Trump’s liberation day tariffs.
As of now, the yuan is trading at 7.14 against the US dollar, the strongest it’s been since Trump assumed his role as the 47th US president.
China has been leveling the currency field by making the yuan as lucrative as a USD alternative. The nation has long been working towards the internationalization of the Chinese Yuan and has finally started to see the results of its efforts.
How countries around the world have been allocating their foreign exchange reserves in different currencies and gold over the years.
— S.L. Kanthan (@Kanthan2030) September 2, 2025
USD and Euro down over the last decade, while gold's share is increasing.
The Chinese Yuan is a newcomer and will continue to rise. pic.twitter.com/9oyq9nx6U9
Purchasing Power Of The Dollar Tumbles
In addition to this, the US dollar has now lost 20% of its purchasing power since 2020. While the rapid de-dollarization forces were earlier gnawing at the USD, Trump’s tariffs have added more fuel to this narrative in recent times.
🇺🇸💸BREAKING: The US Dollar has lost ~20% of its purchasing power since 2020 pic.twitter.com/Wt1jc87oJJ
— Jackson Hinkle 🇺🇸 (@jacksonhinklle) September 2, 2025
“The US dollar is in a constant bear market: the US dollar has lost nearly 50% of its value this century. In other words, the purchasing power of the US consumer dollar has been CUT IN HALF due to inflation since the beginning of 2000. Owning assets is one of the solutions.” As shared by global market investors.
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