The dollar ceases to act as a safe haven asset during crises: the tariffs imposed by Donald Trump in April 2025 boosted the euro and increased debt due to distrust in institutions

In April 2025, the US dollar ceased to function as a traditional safe-haven asset during global crises, as tariffs imposed by Donald Trump bolstered the euro and increased national debt due to growing institutional distrust. For decades, a foundational rule of financial investment was that global uncertainty and geopolitical tensions drove markets toward the US currency.

Simultaneously, heightened market caution and rising sovereign risk were reflected in bond and reserve movements following a geopolitical dispute. Donald Trump strongly rejected assertions by Iran regarding ongoing negotiations to reopen the Strait of Hormuz, dismissing the claim as false and emphasizing that the United States was offering nothing.