President Trump’s second term in office has brought significant changes to US foreign policy and its relationship with the world. These changes include imposing tariffs on the US’s closest allies, such as Canada, and threatening annexing Greenland or reaching out to Russia to end the conflict in Ukraine. While these moves may not be the most surprising, they could ultimately have serious long-term consequences. The tariffs may not bring the US closer to its long-term goal, due to their impact on the US dollar, and other countries’ approach to dealing with them. The structure of the international monetary system, dominated by the US dollar, has long been beneficial to Washington but threatening the currency’s central role in negotiations. Treaty talks could focus on China, who sees it as a risk to strengthen its currency against the dollar. Even allies have to prepare for threats beyond tariffs, and the US’s new foreign policy could undermine the dollar system that has been the backbone of America’s power.

Source: https://www.aljazeera.com/opinions/2025/3/13/trumps-tariffs-may-end-up-blowing-up-the-us-dollar-hegemony?traffic_source=rss