Trump’s Trade War Sparks Conversation About Future of U.S. Dollar

Описание: Whether the U.S. dollar will remain the world's reserve currency in the wake of President Donald Trump's trade war was a source of debate on Wednesday at the 2025 TIME100 Summit.

Writer and CNN host Fareed Zakaria, the moderator of a panel on the future of money, asked whether the U.S. dollar’s status is threatened, especially since “currencies are based on trust.”

He and others pointed to the chaotic weeks since Trump’s April 2 announcement of steep taxes on imports on much of the world, some of which he later paused. Within a day, the U.S. dollar fell to a six-month low against the Euro. On Monday, the ICE U.S. Dollar Index, which measures the dollar against a basket of foreign currencies, showed the dollar dipping to its lowest level since March 2022, according to CNBC.

Raymond Dalio, hedge fund manager and founder of Bridgewater Associates, described the tariff war as a “symptom of an underlying monetary problem” and of mass changes happening in the international and domestic order.

“The dynamic has been that we don't produce things well, and China's a big manufacturer,” Dalio said. “We’re at a point that that’s not sustainable.”

Jeremy Allaire, co-founder, CEO and chairman of Circle, a sponsor of the summit, chimed in and said that issues with the U.S. dollar, especially following the 2008-2009 financial crisis, left a space for businesspeople like him to see how they could utilize digital currency in the face of the volatility of traditional monetary systems. Circle is a stablecoin company, and stablecoins are different from more volatile cryptocurrency in that money goes in a reserve account and are designed to hold the value of a U.S. dollar. In that way, he said, stablecoins are a new form of money that could help “drive” the influence of the U.S. dollar in the global economic system.

“Right now, the United States needs to improve competitiveness and demand for dollars. It needs to improve technology competitiveness,” he said.

Read more: https://time.com/collections/time100-...

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