U.S. dollar drops 3% in Trump’s first year amid concerns over currency “politicization”

WASHINGTON, Jan. 18 (YPA) – Official U.S. data has revealed a decline in the dollar’s value by approximately 3% during the first year of President Donald Trump’s second term.

Analysts view this drop as a direct reflection of “trade protectionism” and mounting global economic tensions.

According to the U.S. Census Bureau, the dollar’s purchasing power fell by 2.6% by the end of 2025, driven by volatile inflation rates and the Federal Reserve’s shift toward monetary easing.

While Trump has defended a weaker currency as a competitive advantage to boost exports, economic experts warn that undermining the Federal Reserve’s independence and using the dollar as a political bargaining chip could lead to a sharp decline in international confidence in U.S. fiscal policy.

The report concludes that the continued “Trumponomics” approach may push the global monetary system toward reducing its reliance on the “greenback” as the primary reserve currency, as markets signal that monetary stability is no longer a “red line” under the current administration’s policies.

YPA