Miguel Otero-Iglesias

3 weeks ago | csis.org | Federico Steinberg |Miguel Otero-Iglesias

The Trump administration’s protectionist “tariff wars” and its “One Big Beautiful Bill” budget proposal, which, if approved, would significantly increase the U.S. deficit and public debt, have once again sparked debate about the potential erosion of the dollar’s status as the undisputed global hegemonic currency. Investors and central banks appear to be applying a risk premium to U.S. public debt due to the radical economic policies coming out of the White House.