This time, things feel different, Wizman said. Instead of shoring up confidence in the buck, Trump’s embrace of tariffs seems intended to undermine a system that Washington previously pioneered.
The policy shake-up not only threatens the dollar’s status as a safe haven during times of market stress, it also could erode the dollar’s status as the de facto global currency, Wizman said. That could unleash a host of negative consequences, including higher borrowing costs for the U.S. government and consumers.
“During the [financial crisis], there wasn’t a movement in the U.S. to dismantle the international trade system or the international financial system. We had a financial shock, but if anything, the U.S. policymakers were proactive in trying to save the system, including through the use of diplomacy,” Wizman said.
