Trump’s tariff reinforces the dollar, but the CEO of the hedging fund sees an imminent decrease – Investco QQQ TRUST, Series 1 (NASDAQ: QQQ), SPDR S & P 500 (Arca: Spy)

With the continued strengthening of the US dollar after the definitions of President Donald Trump, this prominent hedge manager expects this unavoidable decline in the value of the dollar.

What happened: Kevin Se SmithFounder and CEO of Crescat capitalHe warns that the global economy feels the pressure of the dominance of the dollar, with the foundations of the World Central Bank now in its lowest level in more than four years.

Smith attributes this shrinkage to the strength of the dollar, which leads to pressure on the global economy. It suggests that reducing the value of the US dollar – whether through a coordinated or organic process against other currencies – is probably not only “inevitable”.

According to Smith, the US dollar is close to its periodic peak, and the long -term decline in the dollar is already visible when evaluating it on the basis of 10 years. It refers to the main factors that can lead to a decrease in the value of the dollar in 2025, such as low financial stimulation and low sustainable interest rates, which are partially designed to reduce the increasing burden of debt for the federal government.

However, Smith emphasizes that currency movements are always relative, to other major economies. “In particular, no other major economy – be it Japan, Canada, the eurozone, the United Kingdom or Australia – the same necessity faced by the United States, which must maintain the growth of GDP by only 5 % to serve its debts,” He adds.

See also: Palantir Technologies overnight on Robinhood: Trump’s definition or investor tensions?

Why do it matter: Smith also admits that Trump’s tariff may create short -term economic turmoil because it only represents one aspect of the broader and long -term political transformations under the new administration. Refers to comments from the Minister of Treasury Scott PesinAnd that explained that the weakest dollar still coexists with its position as a backup currency in the world – a vision that Trump defended.

Despite the short -term fluctuations that may lead to a temporary estimate of the dollar, Smith’s view is still largely pessimistic about the American currency. He believes that the broader path of the dollar is heading towards a long -term decrease.

If this scenario is running, Smith argues that the consequences may be deep, which represents one of the most important shifts in the global financial scene since the 2008 global financial crisis.

Trump’s tariff: Starting on Tuesday, newly implemented tariffs are scheduled to apply to a third of the United States imports, including a 10 % tax on Chinese goods, and may raise prices through a wide range of industries, from agriculture to cars. The American Chamber of Commerce has caused warnings about possible supply chain disorders and increased costs of American families. The group highlighted fears of more than $ 46 billion in agricultural trade with Mexico and 97 billion dollars of energy exports from Canada, both of which can be affected by definitions.

Also see: After imposing a customs tariff on Canada, Donald Trump threatens a 100 % on the BRICS in order to move against the dollar: “How will you manage production from slippers to ships?” , Asking the expert

Price work: The US dollar index spot was circulated by 1.3 % at 109.776 on Monday, as of 3:07 am, ET. The height of 52 weeks for the index at the level of 110.1760. The index increased by 1.06 % year to date.

according to Benzinga ProThe money traded on the stock exchange follows the index, Investco db us dollar index fun bulish fun UUP and Wisdomtree Bloomberg US Dollaar Bullish Fund Usdu 5.62 % and 7.08 %, respectively, returned over the past year.

the SPDR S & P 500 ETF TRUST spyThe S&P 500, closes 0.53 % less at 601.82 dollars on Friday. At the same time, and Investco QQQ TRUST, Series 1 QQqAnd that follows NASDAQ 100, decreased by 0.15 % to $ 522.29.

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