Commerzbank: If the United States uses sanctions, the dollar's dominance will be threatened

Ulrich Leuchtmann, a foreign exchange analyst at Commerzbank, said the dollar could lose its global dominance if the Trump administration turns to sanctions if tariffs fail. If the United States exerts economic pressure on other countries through sanctions, the cost of using dollars in international payment transactions will become too high. The dollar will then lose its dominance as an international payment method, he said. In the medium to long term, the dollar could also lose its dominance as a reserve currency. "The consequence could be a significantly weaker dollar."