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Investors are skeptical about Donald Trump’s plan to devalue the dollar if he wins the US election, citing potential contradictions with his other policies such as tariffs and tax cuts.
Trump and running mate JD Vance have advocated for a weaker dollar to boost manufacturing and reduce the trade deficit, but experts warn that this approach may be costly and short-lived.
Despite Trump’s rhetoric on dollar depreciation, his proposed policies, including tariffs on imports, could actually strengthen the currency in the short term.
Analysts point out that high tariffs could have a greater impact on non-US economies, potentially leading to currency depreciation in those regions.
Moreover, Trump’s plans to extend tax cuts and other economic measures could further complicate efforts to devalue the dollar.
While some suggest pressuring the Federal Reserve to lower rates as a way to weaken the currency, the potential consequences on global markets remain a concern.
Overall, the likelihood of a successful dollar devaluation under Trump’s presidency is deemed “extremely unlikely” by experts.
Despite the challenges, Trump and Vance continue to push for a weaker dollar as part of their economic agenda, emphasizing the importance of American economic strength in the global market.