‘Dollar will be less useful…’: Capitalmind’s Deepak Shenoy calls out Donald Trump’s ‘fair share’ trade plan

Capitalmind founder Deepak Shenoy has questioned Donald Trump’s record of creating a Foreign Revenue Service to review US trade policy, highlighting the risk of such a move.

Trump, in X, announced his intention to create a system that collects tariffs, duties and revenues from foreign trading partners, claiming it would ensure they “pay their fair share.”

“For too long we have relied on taxing our great people using the Internal Revenue Service (IRS),” Trump wrote. “January 20, 2025 will be the birthday of the Foreign Revenue Service. MAKE AMERICA GREAT AGAIN.”

Shenoy pushed back, highlighting the risks of such a policy shift.

He warned that changing this balance would have significant consequences. “Change that equation and the dollar will be less useful, America will pay more and the debt will be a problem.”

Chenoy highlighted the existing global financial arrangement in which foreign countries exchange goods for dollars, creating demand for US currency and government debt. This system allows US banks to extend large amounts of credit to consumers, effectively subsidizing domestic consumption.

Trump’s proposed tariffs, Chenoy warned, could upset this balance, reducing the foreign willingness to hold U.S. debt and raising borrowing costs for the government.

The proposal comes as the US faces rising interest rates and rising borrowing costs, further straining its fiscal position. Higher tariffs could trigger retaliation from trading partners and potentially reduce their appetite for US debt, increasing financial vulnerability. :

Trump’s rhetoric suggests a fundamental shift. shift the tax burden from American citizens to foreign trading partners. “It’s time for that to change,” he said, describing current trade agreements as “pathetically weak.”