If you’ve been scratching your head over the wild market swings since Donald Trump took office, you’re not alone.

Stocks have been on a rollercoaster – down sharply, then clawing back, only to wobble again as tariff threats loom.

The S&P 500 is currently flirting with its worst quarter since 2023 due to these swings.

While many attribute this to policy uncertainty and trade tensions, a little-discussed motive could be at play: a deliberate effort to weaken the U.S. dollar.

If true, this could be a calculated strategy by President Trump to reshape the U.S. economy…

Here’s Why a Strong Dollar Can Be a Problem

Right now, the U.S. dollar is extremely strong compared to other currencies, meaning its strength makes American goods more expensive for foreign buyers while making foreign goods cheaper for U.S. consumers.

Professor Werner Antweiler at the University of British Columbia found that the dollar could drop significantly – 29% against the euro, 18% against the Canadian dollar, 37% against the Japanese yen, and even 52% against the Mexican peso – before global prices reach equilibrium.

Why does this matter?

When the dollar is too strong, U.S. companies struggle to compete in global markets because their products become too expensive for foreign buyers.

At the same time, cheap imports flood the domestic market, making it harder for American manufacturers to sell their goods.

This imbalance increases the trade deficit and slows job growth in industries that rely on exports, such as manufacturing and agriculture.

Trump’s Strategy Behind a Weaker Dollar

To counter these effects, Trump could be pushing for a weaker dollar by creating all this economic uncertainty.

Historically, currency adjustments have been coordinated efforts – such as the 1985 Plaza Accord, where global powers worked together to weaken the dollar.

This time, however, the approach appears unilateral, with volatility straight from the White House being used as a tool to drive the dollar lower.

Another possible motivation for this strategy is managing the national debt.

The U.S. government owes over $35 trillion, and refinancing that debt at today’s high interest rates is expensive.

With all this economic uncertainty, the Federal Reserve may be forced to lower interest rates, reducing borrowing costs and making debt repayment more manageable.

Trump’s hope to extend the 2017 tax cuts also comes into play here.

According to the Committee for a Responsible Federal Budget, extending the tax cuts passed during Trump’s first term could add another $37 trillion to the national debt over 30 years.

To make this viable without significantly increasing borrowing costs, lower interest rates are needed.

Market volatility – driven by tariff threats, trade disputes, and shifting investor confidence – could be the catalyst to make that happen.

What This Means for Investors

For those watching the markets, the push for a weaker dollar will likely continue for the foreseeable future, with tariffs playing a central role in driving uncertainty.

In the short term, expect stocks to continue trading wildly – down sharply, then clawing back, only to wobble again as tariff threats loom.

However, for long-term investors, this presents opportunities to buy quality stocks at discounted prices.

If this strategy succeeds, a weaker dollar and lower interest rates could boost U.S. manufacturing and corporate earnings over time.

If it doesn’t, well, investors still have the chance to acquire strong companies at reduced valuations.

Of course, I can’t say for certain this is President Trump’s strategy behind his recent tariffs.

But this is the best explanation I’ve heard yet.

If it’s true, this could be a high-stakes gamble to reshape America’s financial landscape.

For now, I’m sticking with my strategy: buy the dip, stay patient, and let the market play out.