The Next Phase of the Trade War: Currency Battles and Impending Devaluation

A New Perspective on U.S. Trade Policy

Since the end of 2024, I have developed a hypothesis rooted in historical trends, economic principles, and global politics. If President Trump truly intended to rejuvenate American manufacturing, reduce the trade imbalance, and increase exports, his approach would extend beyond the implementation of tariffs alone. In fact, the plan would likely involve two key components.

The first element is straightforward—tariffs. These have dominated the news cycle, and I have previously explored Trump’s use of tariffs in detail. In essence, tariffs serve as a bargaining tool, pressuring countries with trade surpluses to renegotiate terms and address imbalances. To put it simply, when the world’s largest economy...