The US dollar's "exorbitant privilege" - its status as a global reserve currency - is under threat, according to economists at Deutsch Bank and Capital Economics. The dollar has lost over 5% against the euro and pound, and 6% against the yen since early April, puzzling investors and hurting consumers. A weaker dollar could lead to higher interest rates for mortgages and car financing deals, as well as increased costs for imports like French wine and South Korean electronics. China is already striking yuan-only trading deals with countries like Brazil and Russia, while BlackRock Chairman Larry Fink warns that the US risks losing its reserve currency status if deficits continue to balloon.
https://stltoday.com/news/nation-world/article_222eb170-dfb5-4e84-b5ca-7ff498b072ca.htmlThe US dollar's "exorbitant privilege" is under threat, with its safe-haven status being eroded due to a decline in value against major currencies like the euro and yen. This could lead to higher prices for imported goods, including French wine and South Korean electronics, and increased interest rates on mortgages and car financing deals. Economists warn that if the US continues to accumulate high levels of debt, it risks losing its reserve currency status to alternatives such as the yuan or digital assets like Bitcoin. The unpredictable nature of US trade policies under President Trump has raised concerns about the stability of the dollar, with some comparing his actions to the 1956 Suez Crisis that led to a decline in British pound value.
https://apnews.com/article/dollar-trump-tariffs-trade-safe-haven-china-c108fd36a3122f85872ad34ba5f5d977The United Nations has warned of widespread malnutrition among children and food shortages due to a blockade imposed by Israel on the Gaza Strip, with aid workers denying allegations that aid is being diverted. The Israeli Defense Minister claims the blockade is a tactic against Hamas, which he accuses of siphoning off aid to maintain its rule. Rights groups have labeled it a "starvation tactic."
https://apnews.com/article/israel-palestinians-hamas-war-news-04-18-2025-4b267bb6600d0a41f899815bf3361563Malaysia's ringgit currency dropped against major currencies, including the Japanese yen, British pound, and euro, due to pressure from US President Donald Trump's talks with Japan. The local note gained value against some ASEAN currencies like the Thai baht and Indonesian rupiah, but traded flat or fell against others such as the Philippine peso and Singapore dollar.
https://www.thestar.com.my/business/business-news/2025/04/18/ringgit-eases-against-greenback-following-slower-gdp-growth-estimateItalian Prime Minister Giorgia Meloni met with US President Donald Trump to discuss a potential trade deal between the EU and the US. Meloni proposed sitting down with Trump to find solutions to their differences, including on immigration and ideology. Trump expressed confidence in reaching an eventual deal but said he was "in no rush." The meeting has sparked disquiet among EU allies, who fear it could undermine bloc unity.
https://www.news18.com/world/make-west-great-again-meloni-meets-trump-over-us-eu-trade-deal-president-hails-her-as-real-leader-9303787.htmlUS President Donald Trump and his economic adviser Kevin Hassett are studying the possibility of firing Federal Reserve Chair Jerome Powell, which could threaten the central bank's independence and further destabilize global markets already affected by Trump's tariff war. The White House is considering this option as a way to address its criticism of Powell's handling of interest rates.
https://www.scmp.com/news/world/united-states-canada/article/3307134/trump-studying-whether-fire-federal-reserve-chief-jerome-powell-adviser-says?module=top_story&pgtype=sectionUS President Trump hinted he may not increase tariffs on Chinese products amid a tit-for-tat tariff battle between the two nations. The trade imbalance issue was sparked by Trump's announcement of "reciprocal tariffs" on almost all trading partners, including China. Despite claims that top Chinese officials had made contact with US counterparts for talks, no details were revealed by the Chinese Ministry of Commerce, which stated it had maintained working-level communication with its US counterparts.
https://www.scmp.com/news/china/diplomacy/article/3307082/what-would-it-take-get-china-and-us-have-trade-talks?module=top_story&pgtype=section#commentsTokyo led Asian markets higher as investors remained optimistic about a potential Japan-US trade deal, with US President Donald Trump expressing reluctance to further hike tariffs on China. Japanese negotiator Ryosei Akazawa met with Trump, Trade Representative Jamieson Greer, and Treasury Secretary Scott Bessent without making immediate progress, but a second round of talks is scheduled for April. Trump also expressed optimism about his relationship with Chinese President Xi Jinping, saying they have reached out to each other multiple times. The US unveiled new port fees on Chinese-built ships as part of efforts to boost its domestic shipbuilding industry and curb China's dominance in the sector.
https://www.victoriaadvocate.com/news/nation/tokyo-leads-gains-in-most-asian-markets-on-trade-deal-hopes/article_a1e0ef0c-df3e-5095-bdf8-e799828eaca5.htmlUS President Donald Trump has issued an executive order requesting a national security investigation into the country's dependence on China for rare earth elements, crucial for aircraft manufacturing. Lockheed, manufacturer of the F-22 fighter jet, is evaluating its global supply chain to secure critical materials for client missions. The Rare Earth Coalition estimates that some manufacturers could run out of key components in weeks, citing a doubling of antimony prices since China restricted exports last year. Automakers may initially absorb increased battery costs without raising vehicle prices, but this might not be sustainable if Beijing's restrictions persist. The US has not produced rare earth elements since the late 1990s, when Chinese low-cost imports flooded global markets. NioCorp has signed a contract to explore its Nebraska site for rare minerals, aiming to secure funding for a $800 million project. U.S. Critical Minerals plans to extract tons of mineral in Montana this summer to test processing methods.
https://apnews.com/article/tierras-raras-trump-aranceles-china-guerra-comercial-3c424f217f18f8cc0ad174199e25e52e