President Donald Trump‘s views about the dollar are getting strong pushback from economists like Europac.com Chief Economist and Global Strategist Peter Schiff.
“Trump said he wants a strong dollar but he also wants a weaker dollar. He says a strong dollar makes you feel better, but a weak dollar makes you richer,” Schiff wrote on X last week.
He added that although Trump claims he crushed inflation, his policies are highly inflationary, saying, “Trump's weak dollar dream will be a nightmare.”
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Trump Defends a Weaker Dollar, But Economists Aren’t Buying It
What caused Schiff’s comments is what Trump told reporters at the White House on Friday: “It doesn’t sound good, but you make a hell of a lot more money with a weaker dollar, not a weak dollar, but a weaker dollar than you do with a strong dollar.”
Trump argued that a strong dollar “sounds good” and helps with inflation, but he also said, “You can’t sell tractors, you can’t sell trucks, you can’t sell anything.” He claimed that countries like China and Japan have long pushed for weaker currencies to dominate global markets.
Financial experts, however, warn that Trump’s stance could backfire.
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9i Capital Group Chief Executive Officer Kevin Thompson told Newsweek that while a weaker dollar helps U.S. exporters and multinational corporations, it can be bad news for households.
“The U.S. is a consumer-driven, import-heavy economy,” he said. “A weaker dollar makes imports more expensive, which can drive inflation. So while there are benefits on the corporate side, it also hurts households by increasing the cost of everyday goods.”
Thompson also took issue with Trump's claim that the U.S. has “wiped out inflation.”
“He’s dead wrong,” Thompson told Newsweek. “We’re still seeing elevated prices in areas like energy, particularly piped gas, and in household essentials. Food costs continue to climb, especially meat, and many families are seeing higher utility bills.”
The dollar has dropped over 10% this year compared to a basket of foreign currencies. The last time the dollar weakened this much early in a year was 1973.
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Trump has said a weaker dollar could help U.S. manufacturers compete globally and boost tourism. He cited the recent rise in Caterpillar Inc. (NYSE:CAT) shares as an example of how a declining dollar benefits heavy industry.
Still, economists caution that a weaker dollar also means Americans pay more when they travel abroad and face higher prices on imported goods.
While the president insists his policies are aimed at strengthening the economy, critics argue that continued deficit spending and rising debt are already shaking global confidence in the dollar.
As Schiff wrote on X back in May, “The yield on 10-year Treasuries is back up to 4.5% as the U.S. dollar resumes its broad-based decline. Despite the trade truce, the world is losing confidence in the dollar and our ability to get our fiscal house in order. The consequences of de-dollarization will be profound.”
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