The U.S. dollar’s reign as the world’s safe-haven currency is under threat

an expert warns, citing inflation, tariffs, and fading global trust in U.S. leadership.

The U.S. dollar’s reign as the world’s safe-haven currency is coming under threat with Donald Trump’s administration rolling out universal tariffs despite the threat of global backlash, a financial expert has warned.

A major shake-up to the global financial order appears to be looming as President Trump announced plans for sweeping tariffs on all U.S. imports in a move that threatens to escalate global trade tensions and marks a radical departure from decades of open-market policy.

While the dollar may spike in the short term as investors react to the shock by retreating into what they think is safety, the nature of this ballooning crisis is different, according to Nigel Green, CEO of financial advisory firm Devere Group.

“The threat is coming from inside the U.S., and the dollar’s safe-haven status might not hold under sustained inflation, weakening real yields, and growing distrust in American economic leadership,” the expert warned Monday.

He further explained that the inflationary pressures stemming from tariff-induced cost increases could weaken the U.S. economic outlook.

“Trump is also aggressively lobbying for interest rate cuts. So, we’re looking at a weaker growth outlook combined with rising prices and political pressure on the Fed to stay dovish. That’s a textbook setup for dollar weakness over the medium term.”

However, Green argued that trust—not just economic size—sustains the dollar’s global dominance, which “Blanket tariffs attack that foundation directly.”

If global partners begin to view the U.S. as hostile or opportunistic, the financial consequences could be dire, according to the executive, who pointed out that visible cracks have already formed in the system.

“We could be witnessing the early stages of global moves away from the dollar as the ultimate safe-haven currency.

The Devere CEO highlighted that ongoing diversification efforts by central banks abroad attest to this shift.

“Central banks in China, Russia, and parts of the Middle East have been gradually reducing their reliance on U.S. Treasuries as they diversify their foreign reserves.” He also pointed to rising interest in alternatives.

“The rise of digital currencies and bilateral trade agreements in non-dollar denominations further suggest a slow but real shift in the global monetary order.”

Looking ahead, Green warned that backlash from global trading partners could worsen the situation.

“If real yields fall, trust erodes, and America is seen as the source—not the shield—of global instability, we believe the dollar could begin to lose its unique safe-haven advantage.

He urged investors to rethink their portfolio strategies.

“Investors must position accordingly. Holding only USD-based assets or assuming the dollar will always outperform in a crisis is no longer a viable strategy. Tariffs will bite. Inflation will rise. And if the rest of the world sees the U.S. abusing its monetary power and abandoning open trade principles, the shift away from the dollar will accelerate. This could be an historical turning point for the U.S. currency.”