Cover Story: How the Yuan is Taking Over the Dollar’s Role in Global Trade

In the first half of 2025, the U.S. dollar tumbled across the board, sliding against the euro, pound and Chinese yuan in what many global investors are calling its “worst six months in modern history.”

Behind the plunge is the fallout from U.S. President Donald Trump’s second-term trade policies — particularly a renewed obsession with “reciprocal tariffs” — and a growing crisis of confidence in America’s fiscal discipline and central bank independence. The dollar, once untouchable, is suddenly looking vulnerable.