Peter Leahy

Peter Leahy is an independent consultant specialising in the International Wholesale Interest Rate and Credit markets. He has worked with most of the world's largest financial institutions

Wednesday

Peter Leahy

Could Trump’s tariffs damage the dollar?

Donald Trump says his tariffs are about liberation. But his aggressive turn toward protectionism may signal the start of a shift away from the foundations that have upheld American prosperity for decades. The dollar’s status as the world’s reserve currency has long enabled the United States to consume far more than it produces, run massive deficits without consequence, and project unparalleled geopolitical power. Trump’s decision to impose tariffs of up to 25 percent on imports could put all that at risk. When French President Valéry Giscard d’Estaing referred to the United States’s “exorbitant privilege,” he wasn’t talking about America’s central position in the post-WWII world order.

tariffs
Peter Leahy

Trump’s tariffs could damage the dollar

From our UK edition

Donald Trump says his tariffs are about liberation. But his aggressive turn toward protectionism may signal the beginning of a shift away from the foundations that have upheld American prosperity for decades. The US dollar’s status as the world’s reserve currency has long enabled the United States to consume far more than it produces, to run massive deficits without consequence, and to project unparalleled geopolitical power. Trump’s decision to slap tariffs of up to 25 per cent on imports could put that all at risk. When French president Valery Giscard d’Estaing referred to the United States’ ‘privilège exorbitant‘ he was not referring to America’s central position in the post-WW2 world order.