Trump’s Tariffs Were Meant to Boost the USD—So Why Is It Crumbling?

The dollar's unexpected slump defies conventional wisdom—and Washington's playbook.

Tariffs as a weapon, USD as collateral damage

Markets are calling bluff on protectionist policies that were supposed to shore up the greenback. Instead, traders are flocking to assets that actually reward risk—like crypto.

Strongman economics meet weak currency reality

When political theater clashes with monetary fundamentals, guess which one loses? The Fed's balance sheet tells the real story the White House won't.

Another case of politicians treating currencies like campaign slogans—while decentralized assets quietly eat their lunch.

The President’s Latest Move and Its Effect on the US Dollar

Donald TRUMP was elected in January 2025 and had assumed duties with great vigor and enthusiasm. Investors celebrated his election with zest, hoping the dollar would eventually gain a significant upswing once Trump officially assumed the reins of administration. However, since the start of his political career as the 47th US president, things have started to go awry significantly.

His election was meant to fix the US dollar’s wobbly stance, but the opposite has happened. The US dollar has now fallen to new levels, with the DXY index touching 96 for the first time in years.

US Dollar Alert:

The $USD just slipped below 97 for the first time in months — now hitting a fresh low of 96.94.

Watch the metals… this could light the fuse.pic.twitter.com/7m9tauJKUJ

This notable devaluation comes after Trump’s latest spree of opinions on how he wants to remove Fed Chair Jerome Powell from office. On Wednesday, Trump ended up delivering a few stark opinions about Powell, labeling him a “terrible” person.

said Trump.

Trump is also planning to replace Powell as early as September, eager to announce a new successor in his place.

JUST IN:President Trump says he started interviewing candidates to replace Fed Chair Jerome Powell.

pic.twitter.com/LYZMlQJe7m

President Donald Trump has long been spiteful towards Powell, stating his unwillingness to cut rates as the primary reason for his angst and rising temper against the Fed chair.

US Dollar Plunges Amid Trump-Powell Clash

Amid the heightened tensions between Donald Trump and Jerome Powell, the markets are showing a rather cautious stance at the moment. The investor sentiment towards the dollar has now changed, with the USD depreciating against its competitors, including the euro, Swiss franc, pound, and yen.

. W. A. A. W.Tony Sycamore, a market analyst at IG, told Reuters.