The Tariff Trap & the Unstable Truth

Trump just announced 50% tariffs on the EU.

It’s not just a policy move. It’s a signal. It is a crack in the illusion of stability that props up the U.S. dollar.

Because global demand for the dollar isn’t magic.
It’s math.
It’s trade.

People need dollars to buy American goods.

But if America makes trade harder, more punitive, more erratic, then that demand fades.
And when demand fades, the dollar weakens.

But the bigger issue?
It’s faith.
Faith in U.S. debt as a safe haven.
Faith in trade as a long-term game.
Faith in the system to act rationally, not emotionally.

Every erratic move, every tariff tantrum, chips away at that faith.
And when the faith breaks, the systems built on top of it wobble.

We saw it already.
USDC’s depeg in March 2023 wasn’t just a stablecoin story -- it was a bond market story.
It was a “your treasuries aren’t actually liquid” story.

Now imagine that on a bigger scale.
More tariffs.
More erratic policy.
More countries questioning why they should hold U.S. debt at all.

What happens then?
The dollar doesn’t collapse in a bang.
It unravels slowly, through self-inflicted wounds.
Through contradictions, denial, and “temporary” policies that become habits.

It’s time to admit the obvious:
The dollar isn’t stable.
It’s unstable.

And every move like today’s makes the unstable meme more real.