Trump Touts Weak Dollar as Boost for US Economy

The president's push for a weaker dollar could backfire amid his unpredictable policies, experts warn.

Published on Feb. 4, 2026

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President Donald Trump has expressed a desire for a weaker U.S. dollar, believing it would boost American exports and the economy. While a weak dollar can provide some economic benefits, Trump's unpredictable foreign policy and trade decisions risk undermining the dollar's global dominance, which could have far-reaching consequences.

Why it matters

The U.S. dollar's status as the world's reserve currency gives the United States significant economic advantages, including the ability to borrow more cheaply and impose powerful sanctions. However, Trump's antagonistic approach toward traditional U.S. allies and global institutions threatens to erode the dollar's dominance, which could diminish America's economic clout.

The details

Trump has long advocated for a weaker dollar, believing it would make U.S. goods more competitive abroad. While a declining dollar can boost exports, economists warn that Trump's mercurial policies, such as his 'Liberation Day' tariffs, are undermining global confidence in the stability of the U.S. economy and the reliability of the dollar. This could lead other countries to seek alternatives to the dollar, chipping away at its supremacy.

  • In 1987, Trump took out full-page ads criticizing the strength of the U.S. dollar against the Japanese yen.
  • Last spring, the dollar dropped by about 2% after Trump announced his 'Liberation Day' tariffs.
  • On February 4, 2026, Trump told reporters at an event in Urbandale, Iowa that the dollar's declining exchange rate was 'great.'

The players

Donald Trump

The 45th President of the United States, who has long advocated for a weaker U.S. dollar to boost American exports.

Kenneth Rogoff

A former chief economist of the International Monetary Fund, who stated that the president wishing for a weaker dollar is 'like doing a rain dance.'

Valéry Giscard d'Estaing

A former French Finance Minister who coined the term 'exorbitant privilege' to describe the advantages the U.S. enjoys as the issuer of the world's reserve currency.

Maurice Obstfeld

Another former chief economist of the International Monetary Fund, who warned that 'enough inner geopolitical chaos caused by Trump' could shrink the dollar's reach and boost other currencies.

Annie Lowrey

An Atlantic staff writer who noted that Trump's 'Liberation Day' tariffs raised questions about 'whether the United States deserves to have its privilege revoked.'

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What they’re saying

“As your President, one would think that I would be thrilled with our very strong dollar. I am not!”

— Donald Trump (Twitter)

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

The Federal Reserve's interest rate policy will be a key factor in determining the future direction of the U.S. dollar's value.

The takeaway

While a weaker dollar may provide some economic benefits, President Trump's unpredictable policies and antagonism toward global institutions risk undermining the dollar's status as the world's reserve currency, which could have far-reaching consequences for America's economic standing and influence.