In brief
The U.S. dollar has dropped over 10% in the first half of 2025 due to tariff threats and rising inflation, leading to a frantic race for trade negotiations and reinforcing China's dominance in green energy.
The U.S. dollar has had a bumpy ride in 2025, dropping more than 10% against major currencies in just six months—the worst beginning of a year since 1973! Factors like President Trump’s tax proposals, a focus on isolationist policies, and rising inflation have shaken global confidence in America's financial stance. While the president plans to enforce tariffs on July 9, countries are scrambling for trade agreements that may only offer partial solutions.Meanwhile, Canada is on a mission to eliminate internal trade barriers, even though experts argue it's not enough to make up for declining U.S. trade. Economists are also concerned about the often tumultuous U.S. and EU negotiations aiming for a trade deal by the deadline, which may yield only vague outlines.On a different note, while China still leads in overall pollution levels, it is rapidly catching up with the clean energy race, paving the way for future power dynamics in global economics. As these events unfold, they are shaping not just trade, but the entire financial landscape.
