Donald Trump says a shrinking U.S. dollar is nothing to worry about. In fact, he says it’s “great.”
Speaking at a press conference in Iowa on Tuesday, the president dismissed growing concern over the dollar’s rapid decline, even as the currency hit its lowest level in more than four years. Asked directly whether he was troubled by the slide, Trump replied: “No, I think it’s great. I think the value of the dollar — look at the business we’re doing.”
Moments later, he added, “The dollar’s doing great.” Markets appear less convinced.
According to Tyla, the U.S. dollar has fallen more than 10 percent over the past 12 months, with a sharp acceleration this week. On Tuesday alone, it dropped 1.3 percent — its steepest single-day fall since April — before sliding another 0.2 percent on Wednesday.
BREAKING: Trump says the dollar is doing great. This is a lie. The value of the dollar dropped 9% relative to other currencies in the year since Trump returned to office. pic.twitter.com/6syd55a4Ur
— Trump Lie Tracker (Commentary Account) (@MAGALieTracker) January 27, 2026
Investors have responded by pulling money out of U.S. assets, shifting instead toward gold and the Swiss franc, two traditional safe havens when confidence wobbles.
The latest dip comes amid renewed uncertainty around U.S. trade and foreign policy. Trump has repeatedly threatened new tariffs on European countries, revived talk of taking control of Greenland, and floated military action against Iran. Earlier this month, the administration also oversaw the controversial capture of Venezuelan leader Nicolás Maduro.
Currency markets tend to dislike surprises. They have been getting a steady supply.
Some economists say a weaker dollar can benefit exporters by making American goods cheaper abroad. That logic has long appealed to Trump, who favors manufacturing-heavy trade balances and energy exports.
But the other side of that equation is harder to ignore. A falling dollar reduces purchasing power, raises the cost of imports, and can squeeze companies that rely on overseas supply chains. It also weighs on international earnings when foreign revenue is converted back into dollars.
Trump: “the US dollar is doing great!!”
The US dollar: pic.twitter.com/U0y5fjgyo4
— ProudCanRobz 🇨🇦 (@RMapleCan) January 28, 2026
Karl Schamotta, chief market strategist at Corpay, said uncertainty is now driving the selloff. “With the ‘tariff man’ showing no sign of repentance and the U.S. government headed into another shutdown, economic policy uncertainty is soaring once again,” Schamotta said.
That instability, he said, risks accelerating what traders have already labeled the “Sell America” trade. “For now, no one is willing to catch the falling chainsaw that is the US dollar,” he added.
The effects won’t stop at U.S. borders. In Britain, the pound has strengthened against the dollar, giving travelers more buying power in the United States and lowering the cost of imported American goods. That could help ease inflation pressures in the short term.
But the gains come with trade-offs.
Whether intended or otherwise, this administration sure looks as if it’s engineering a decline in the dollar: pic.twitter.com/Az5ikDZTA8
— Karl Schamotta (@Karl_Schamotta) January 27, 2026
British companies exporting to the U.S. face stiffer competition, especially if Trump follows through on fresh tariffs. He threatened new levies over the weekend after UK Prime Minister Keir Starmer declined to support his Greenland proposal.
A weaker dollar also hits the U.S. earnings of British firms with American operations, along with the value of U.S.-based investments held by UK pension funds. Many workplace pension schemes hold dollar-denominated assets, which lose value as the currency declines.
For now, the White House is projecting calm.
Trump has shown little interest in moderating his rhetoric, and no sign of shifting course. His public posture suggests the dollar’s slide is either a feature, not a flaw, or simply not his problem.
Markets, meanwhile, continue to price in risk, not reassurance. And the gap between those two views is getting wider by the day.
