Summary

Following fresh tariffs, Trump may escalate pressure on allies by leveraging America’s financial dominance.

Options include restricting dollar access via Fed swap lines or pressuring payment giants like Visa and Mastercard, risking disruptions in Europe.

Trump’s advisers suggest a “Mar-a-Lago accord” to force currency revaluations, echoing the 1985 Plaza Accord, though economists doubt its feasibility.

Such moves could strain global markets, weaken trust in the dollar, and provoke retaliation. European leaders are considering countermeasures, fearing economic coercion and financial instability.