Trump’s Dominant Dollar Idea Risks Backfiring, Commerzbank Warns
- Tariffs would damage the global economy, Leuchtmann says
- He says investors should pay attention to Trump’s new platform
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Donald Trump’s plan to force dollar dominance in global trade has a high risk of causing economic disruption that could ultimately weaken the US currency, according to a long-range scenario by a Commerzbank AG strategist.
In a note on Monday, Ulrich Leuchtmann, the bank’s head of foreign exchange research, analyzed a theoretical chain of events that could play out in US financial markets if Trump’s threat to impose 100% tariffs on countries that shun the dollar, a pledge made at a rally in Wisconsin on Saturday, becomes reality.