Overview

• Reports indicate Trump's team is considering devaluing the U.S. dollar to make American exports cheaper and reduce imports, potentially boosting the economy short-term but posing long-term risks.
• Economic experts warn that such a strategy could lead to higher inflation, negatively affect global trade relationships, and threaten the dollar's status as the world reserve currency.
• Devaluing the dollar could also result in retaliatory measures from other countries, leading to a potential cycle of devaluation and economic instability.
• The plan could face significant opposition from Wall Street and economic policymakers, given its potential to disrupt global markets and U.S. economic stability.
• Structural reforms, rather than currency manipulation, are suggested as a more sustainable approach to addressing the U.S. trade deficit.