Former President Donald Trump’s bold “Liberation Day” plan to implement universal tariffs could mark a turning point for the US dollar’s dominance as the world’s ultimate safe-haven currency, warns Nigel Green, CEO of deVere Group, one of the largest independent financial advisory firms.
Green’s warning comes as Trump prepares to impose an unprecedented wave of tariffs on foreign goods, a move he claims will spark a major economic resurgence in the United States. The proposed measures could have significant implications for global trade, market stability, and the US dollar’s role in the international financial system.
“The sweeping, universal tariffs on all US imports, unveiled in a defiant announcement from the White House, marks a sharp escalation in global trade tensions and a radical departure from decades of open-market policy,” notes Nigel Green.
“The dollar may spike in the short term, as investors react to the shock by retreating into what they think is safety.
“But the nature of this ballooning crisis is different. The threat is coming from inside the US, and the dollar’s safe-haven status might not hold under sustained inflation, weakening real yields, and growing distrust in American economic leadership.”
Universal tariffs reduce imports, and by extension, the demand for foreign currencies. That can lift the dollar—at least mechanically. In the early stages of the announcement, the dollar strengthened against emerging market currencies and commodity-linked peers, as global risk aversion took hold.
“Investors tend to reach for the dollar reflexively when things get rough. But this is a fundamentally inflationary policy that undermines the dollar’s long-term strength,” says Nigel Green.
He explains that tariffs will raise costs on a broad swathe of consumer and industrial goods, feeding into higher prices across the board.
“Trump is also aggressively lobbying for interest rate cuts. So, we’re looking at a weaker growth outlook combined with rising prices and political pressure on the Fed to stay dovish. That’s a textbook setup for dollar weakness over the medium term.”
The dollar’s reserve currency status is built not just on the size of the US economy, but on trust: trust in its institutions, in the rule of law, and in its commitment to relatively open trade. Blanket tariffs attack that foundation directly.
“If the world begins to see the US as an unreliable trading partner, or one that uses its currency and economic size as a weapon, that changes everything,”notes the deVere CEO.
“We could be witnessing the early stages of global moves away from the dollar as the ultimate safe-haven currency.”
Already, there are signs of strain. Central banks in China, Russia, and parts of the Middle East have been gradually reducing their reliance on US Treasuries. The rise of digital currencies and bilateral trade agreements in non-dollar denominations further suggest a slow but real shift in the global monetary order.
As retaliation builds from Europe, China, and other major economies, the dollar could come under sustained pressure.
“If real yields fall, trust erodes, and America is seen as the source—not the shield—of global instability, we believe the dollar could begin to lose its unique safe-haven advantage,” affirms Nigel Green.
“Investors must position accordingly. Holding only USD-based assets or assuming the dollar will always outperform in a crisis is no longer a viable strategy.”
The deVere CEO concludes: “Tariffs will bite. Inflation will rise. And if the rest of the world sees the US abusing its monetary power and abandoning open trade principles, the shift away from the dollar will accelerate.
“This could be an historical turning point for the US currency.”