Trump’s Dollar Dominance Plan Could Backfire, Warns Commerzbank Strategist

A Commerzbank strategist warns that Donald Trump’s proposal to enforce dollar dominance in global trade could lead to economic disruption and potentially weaken the U.S. currency. Ulrich Leuchtmann, head of foreign exchange research at Commerzbank, suggests that Trump’s threat to impose 100% tariffs on countries that avoid the dollar could backfire, causing countries to move away from the dollar, potentially jeopardizing the safe-haven status of Treasuries and triggering a significant weakening of the dollar.

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