Tariffs, mounting debt threaten dollar's role as global reserve currency

The U.S. is pursuing policies that are damaging its global standing and relationships. These actions are creating a situation where the U.S. dollar's role as the world's reserve currency is threatened. This shift is happening because of the U.S.'s trade practices, strained alliances, and growing debt. Countries are increasingly looking to alternatives like the euro and the Chinese renminbi. The current situation is accelerating the move away from dollar dominance. The U.S. uses sanctions, which is causing friction, even with allies, who are seeking more financial autonomy. The shift is due to the U.S. acting as a geopolitical bully. The advantages of the dollar's role include lower interest rates and national security benefits. However, some U.S. officials believe the costs outweigh the benefits and that it hinders competitiveness. Rogoff suggests that the costs of losing the dollar's dominance are more significant, especially during crises. The move away from the dollar is happening slower than many expect.