For more than seven decades, the US dollar has sat firmly on the throne of global currencies, imbued with the power of habit and confidence in the world’s most powerful economic system. But this dominance, which has withstood wars and crises, now faces the most serious existential threat in its history, and the danger comes from within – from the policies of US President Donald Trump himself.
Historical Alarm Scream
On April 2, Trump unleashed what looked like a firestorm when he announced the imposition of harsh new tariffs on virtually every U.S. trading partner. This was not just an economic decision, but the culmination of a consistent pattern under Trump: "arming American economic power" and turning it into a weapon in his conflicts.
Why is the dollar still king?
The dominance of the dollar has always been based on three main pillars:
Liquidity and wide useThe dollar accounts for 90% of global currency trading and half of SWIFT transactions.
Global Account UnitEven when America is not a party to the deal, commodities are priced from oil to wheat in dollars.
Secure store of valueThis depends on the world’s confidence in the stability of the US economy and the independence of its institutions.
Lack of real competition
Despite the hype, the scene remains devoid of a real alternative:
Chinese Yuan: It is constrained by an unopened financial market and strict capital flow control.
Euro: It suffers from internal divisions and the absence of a real financial union.
BRICS: Remains on paper in light of the great variation between the countries of the group.
How to dig the grave of American hegemony?
The real danger does not come from competitors, but from within:
Arming the economyRandom tariffs undermine the world’s confidence in America as a reliable partner.
Excessive penaltiesIt pushes countries to look for alternative payment systems away from the dollar.
Undermining the rule of lawTrump’s attacks on the independence of the judiciary and the central bank shake the foundations of confidence.
Threat to US Debt Credibility: Any tampering with U.S. Treasuries will elude investors.
catastrophic consequences for the world.
The collapse of the dollar hegemony will not only be an American loss, but the whole world will pay the price:
- High global transaction costs
- The complexity ofTrade Exchanges
- Decline in living standards
- Global economic chaos
History lessons warn of dangers.
In the 19th century, the British pound was the master of currencies, and British financiers felt secure in its dominance. But global wars and decades of political and economic decline ended that dominance.
America is at a similar crossroads. If the dollar finally falls, it will not be because of an inevitable fate, but because of the Trump administration’s choices that could turn America’s most powerful weapon into its first policy casualty.
Question now: Does Washington realize that Trump’s storm could sweep the throne of the dollar and the world together?
