Trump plans to weaken the US dollar for trade

US President Donald Trump may seek to weaken the US dollar during his second term to support protectionist trade policies. His advisors believe a lower dollar could make American products more competitive abroad, similar to strategies used in the 1980s. Trump's approach contrasts with the dollar's current strength, which helps keep inflation low and attracts foreign investment. His advisors suggest that a weaker dollar could counteract the effects of tariffs that make US goods more expensive overseas. Proposals for achieving a weaker dollar include encouraging other countries to tie their currencies to the dollar or reducing foreign investment in US Treasury bonds. However, these strategies could introduce risks to global markets and the US economy.