Trump: "I Don’t Like a Weak Dollar, But It Makes a Lot of Money"

U.S. President Donald Trump on Friday delivered conflicting remarks about the strength of the U.S. dollar, saying he prefers a strong currency but also praised the economic upside of a weaker one, particularly for American manufacturing.

“I’d never say I love a weak currency,” Trump told reporters as he departed for Scotland. “I’m someone who prefers a strong dollar, but weakness makes you a lot of money.”

His comments come amid growing speculation in global markets that the Trump administration may be implicitly favoring a weaker dollar as part of its strategy to boost exports and domestic industry.

This isn’t the first time Trump has sent mixed signals on currency policy. In earlier statements, he warned: “I won’t allow the dollar to fall. Losing the dollar as a reserve currency would be like losing a war.”

Yet recent moves by his administration, including aggressive tariff hikes and nationalistic trade policies—have contributed to mounting pressure on the dollar. Currency traders are closely watching for signs that the White House might be steering away from the strong-dollar policy long upheld by previous administrations.

According to The Economist, the dollar is undergoing its most significant weakness in years, driven in part by policy unpredictability under Trump’s leadership. Recent tariffs, including a 50% duty on copper and a 30% levy on EU imports, have only added to market unease.

While U.S. financial markets remain broadly stable, some analysts warn that the dollar’s position as the world’s premier safe-haven asset may no longer be assured. Investors appear increasingly desensitized to policy shocks, with major announcements drawing more muted reactions than in previous years.

At the same time, emerging market economies have shown a growing appetite for euro-denominated bonds, reflecting a broader shift away from dollar reliance.

Trump’s remarks underscore a complex challenge: balancing domestic economic gains from a weaker dollar with the long-term risks of diminished global trust in the currency. While a weaker dollar can supercharge exports and benefit manufacturers, sustained depreciation could undermine the currency’s central role in global finance.

As Trump walks a fine line between nationalist economic goals and global financial stability, markets continue to brace for further volatility.