{"id":13586,"date":"2026-01-19T02:02:17","date_gmt":"2026-01-19T02:02:17","guid":{"rendered":"https:\/\/microvibenews.com\/?p=13586"},"modified":"2026-01-19T02:02:17","modified_gmt":"2026-01-19T02:02:17","slug":"dollar-sinks-as-trumps-new-tariffs-raise-fears-about-u-s-debt-and-reserve-currency-status","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=13586","title":{"rendered":"Dollar sinks as Trump’s new tariffs raise fears about U.S. debt and reserve currency status"},"content":{"rendered":"

<\/p>\n

The greenback dropped while precious metals rallied Sunday as financial markets started reacting to President Donald Trump\u2019s new tariff threats.<\/p>\n

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The dollar sank 0.31% against the euro to $1.16 and tumbled 0.32% against the yen to 157.58. Meanwhile, gold rose 1.95% to a fresh record of $4,684.30 per ounce. Silver jumped 5.66% to $93.53, also a new high.<\/p>\n

Due to the Martin Luther King Jr. Day holiday on Monday, U.S. stock and bond futures were inactive.<\/p>\n

On Saturday, Trump said Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland will be hit with a 10% tariff starting on Feb. 1 that will rise to 25% on June 1, until a \u201cDeal is reached for the Complete and Total purchase of Greenland.\u201d<\/p>\n

The announcement came after those countries sent troops to Greenland this past week, ostensibly for training purposes, at the request of Denmark.<\/p>\n

Trump has refused to back down from taking over Greenland, even keeping military options on the table, while the administration has also left open the possibility of buying the island. <\/p>\n

At the same time, the European Union is weighing options for retaliation, including the bloc\u2019s anti-coercion instrument that has been described as a \u201ctrade bazooka\u201d for its scope and severity.<\/p>\n

Not only do Trump\u2019s latest tariffs pose an existential threat to the trans-Atlantic alliance, the fallout could threaten the dollar\u2019s dominance and so-called exorbitant privilege. <\/p>\n

\u201cThe dollar\u2019s reserve-currency status allows us to live beyond our means. Soaring debt, tariffs, and military threats jeopardize that status,\u201d Peter Schiff, chief economist and global strategist at Euro Pacific Asset Management, warned on X. \u201cWhen it\u2019s lost, economic collapse will follow.\u201d<\/p>\n

And the EU holds significant leverage over Trump as European countries own $8 trillion of U.S. bonds and equities, almost twice as much as the rest of the world combined, according to George Saravelos, head of FX research at\u00a0Deutsche Bank.<\/p>\n

America\u2019s vulnerability in global financial markets was not lost on Rep. Thomas Massie, R-Ky., who reacted to Schiff\u2019s post.<\/p>\n

\u201cAs the dollar\u2019s reserve currency status diminishes, so does our ability to tax the world by creating more money,\u201d he wrote. \u201cWhen reserve status is lost, maintaining current spending levels and servicing the debt will be even more painful for Americans who will bear the full inflation tax.\u201d<\/p>\n<\/div>\n

#Dollar #sinks #Trumps #tariffs #raise #fears #U.S #debt #reserve #currency #status<\/p>\n","protected":false},"excerpt":{"rendered":"

The greenback dropped while pr… <\/p>\n","protected":false},"author":1,"featured_media":13587,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[5807,575,354,540,1200,4536,9467,3554,490,491,496,764,6121],"_links":{"self":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/13586"}],"collection":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13586"}],"version-history":[{"count":0,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/13586\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/media\/13587"}],"wp:attachment":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}