The US dollar has steadily weakened with the onset of Trump’s tariff wars that began in January
President Donald Trump’s tariffs may have kicked off a global economic shuffle that might not favor America anymore.
The US receives nearly $2 trillion in investments annually through stock, bonds and businesses. But recently, global investors have been pulling back.
The US dollar has steadily weakened with the onset of Trump’s tariff wars that began in January. It is a signal that foreign investors are selling US stocks and reallocating capital elsewhere.
So far, in 2025, the S&P 500 is among the worst-performing major indices.
The ING multinational bank recently warned of a “sell America Inc. risk,” which could be catastrophic since foreigners hold nearly 30% of publicly held US government debt.
There is also another financial red flag waving in the background. US government bond and Treasury note demand has been faltering.
It signals that America’s reputation as the world’s safest investment is taking a hit. Experts warn this could raise borrowing costs from mortgages to car loans and corporate financing.
While some blame Trump’s tariff threats and US policy changes for shaking investor confidence, others cite hedge fund unwinding or general instability as culprits.
Trump hit a 90-day pause on tariffs, admitting the bond market had investors “queasy.”
Still, it’s not all doom. Billions of dollars are invested in US infrastructure like auto plants and data centers.