Tariffs, Turmoil, and Trust: Is the Dollar Losing Its Global Grip?"

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Is the US Dollar Facing a Confidence Crisis?

Growing concerns over erratic economic policies have led investors to question the long-standing stability of the US dollar. Following President Donald Trump’s announcement of sweeping tariffs on April 2—termed “Liberation Day”—financial markets wobbled, and the dollar took a sharp hit.

While stock markets in the US have since recovered, the dollar has continued to slide. Traditionally a safe haven during periods of uncertainty, the greenback’s continued decline reflects investor anxiety about America’s economic direction and the broader impact of protectionist trade policies. Many now fear that such moves could tip the US into recession later this year.

Trump's aggressive approach to tariffs has sparked speculation about a gradual erosion of dollar dominance in the global financial system. In a recent analysis, Deutsche Bank highlighted a looming “dollar confidence crisis” triggered by the uncertainty that followed the April 2 announcement.

What Happened to the Dollar?

The introduction of wide-ranging tariffs against numerous countries triggered a loss of trust in the US economy. In just three days after the policy reveal, over $5 trillion in value was wiped off the S&P 500 index. Even US Treasury bonds—usually seen as rock-solid investments—experienced selloffs, leading to increased borrowing costs for the government.

Although Trump later delayed most tariffs by 90 days (excluding those on Chinese goods), investor sentiment remains fragile. Since the start of April, the dollar has dropped 3% against a basket of global currencies, hitting its lowest level in three years. This follows an overall 10% fall since early 2025.

Why Does the Dollar Matter Globally?

The US dollar has been the cornerstone of global finance for decades. Its rise to prominence began during the world wars, and solidified in the 1970s when President Nixon decoupled it from the gold standard. Since then, it has become the default anchor for international trade and finance.

Even today:

• More than half of global trade is priced in dollars.

• Around 60% of global bank deposits are held in dollars.

• Nearly 70% of international bonds are dollar-denominated.

• Over half of the world’s foreign exchange reserves are maintained in the greenback.

This dominance relies heavily on confidence in the US economy, legal infrastructure, and political stability—factors now being questioned due to sudden policy shifts.

The Bigger Picture

Trump’s unconventional approach and disregard for global economic norms have raised red flags. Many investors are reassessing their exposure to US assets, worried that the risks may now outweigh the historical stability the dollar once promised.

Although a total collapse of the dollar’s status is unlikely in the short term, the foundation of its dominance—global trust—is clearly under strain. If uncertainty persists, other currencies or financial systems may begin to chip away at the dollar’s position.

 

 The Endless Legal Disputes Over Muslim Donated Lands in India

In a move that has stirred political and communal waters, the **Lok Sabha passed the Waqf (Amendment) Bill, 2025**, during a 12-hour-long debate. The bill seeks to amend the **Waqf Act of 1995**, which governs Muslim charitable properties across India. While the government insists the amendment ensures greater transparency, critics fear it’s a veiled attempt at state overreach into minority affairs.

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What is Waqf, Really?

The term Waqf comes from Islamic jurisprudence. It refers to a permanent dedication of property or wealth for religious or charitable purposes. Once declared, a waqf cannot be revoked. It is considered a donation to God, managed by a trustee (Mutawalli), and meant to serve the public good — like running a mosque, maintaining a graveyard, or funding education and healthcare. In India, Waqf Boards are state-established statutory bodies responsible for overseeing these properties, ensuring they are used according to their religious intent.

A Legacy Spanning Centuries

Waqf in India dates back to the 12th century during the Delhi Sultanate. Over centuries, rulers, nobles, and even common people have donated land for religious and social welfare. Even during British rule, the system was preserved through the Mussalman Waqf Validating Act of 1913, despite initial judicial hostility. Today, India is home to the largest Waqf estate globally

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How Big is Waqf in India?

• 9.4 lakh acres of land

• Over 8.7 lakh registered immovable properties

• 16,000+ movable assets

• Over 3.5 lakh Waqf estates

• Estimated value: ₹1.2 lakh crore

Waqf Boards are now India’s third-largest landowners, after the Indian Army and the Railways.

Waqf (Amendment) Bill 2025 Passed Amid Controversy: Muslim Community Raises Alarm

The Lok Sabha passed the contentious Waqf (Amendment) Bill, 2025 on April 3 after a marathon 12-hour debate. Introduced by Union Minority Affairs Minister Kiren Rijiju, the Bill amends the Waqf Act, 1995, reshaping the governance and management of Waqf properties in India. While the government defends the bill as a much-needed reform to eliminate irregularities and enhance transparency, the opposition and sections of the Muslim community have branded it as anti-minority and unconstitutional.

Control or Co-option?

At the heart of the controversy is the power shift. The bill empowers the central government to decide:

• Whether a piece of land can be declared Waqf

• Who sits on Waqf Boards

• Whether a donation is valid based on the donor's "religious adherence"

This centralization is being seen as a threat to Article 26 of the Constitution, which grants religious communities the right to manage their own affairs in matters of religion.

Asaduddin Owaisi, the AIMIM chief, argued that the Bill is part of a broader pattern of undermining Muslim institutions. “This is not reform. It’s takeover,” he said on the Parliament floor.

Community Representation in Question

The inclusion of non-Muslim board members and non-Muslim CEOs in Waqf Boards has drawn sharp criticism. Many feel that allowing the state to appoint people from outside the community compromises the autonomy and religious character of the institutions. The government insists this is merely an administrative step and assures that non-Muslims will not interfere in religious decisions—but the community remains unconvinced.

The “Practising Muslim” Clause

One of the most controversial aspects of the amendment is the requirement that only someone who has been a practising Muslim for at least five years can donate land to Waqf. Critics say this opens the door to arbitrary judgments. How do you define a practising Muslim? Do they have to offer namaz five times a day? Observe all fasts? Visit the mosque regularly?

This provision, they argue, risks excluding cultural or liberal Muslims, or even converts who may not meet these undefined benchmarks.

'Where is Mr. Musk in all of this?'

 Judges question secrecy of DOGE's activities

      SUMMARY 

• Musk's role in DOGE questioned in court

• DOGE's secrecy complicates legal challenges

Elon Musk's Role in the Department of Government Efficiency Faces Legal Questions

Elon Musk has publicly claimed credit for leading efforts to reduce wasteful government spending in the U.S. He has even appeared at conferences waving a chainsaw to symbolize his cost-cutting efforts. However, in court, things aren’t so clear. A federal judge recently questioned government lawyers about Musk’s role in the Department of Government Efficiency (DOGE), the team responsible for these actions.

Uncertainty About Musk’s Role

During a court hearing, Judge Colleen Kollar-Kotelly asked a government lawyer multiple times about Musk’s involvement, but the answers were vague. The lawyer said Musk is a "close adviser to the president," but didn’t explain exactly what role he plays in DOGE. While Musk has often taken center stage in media and rallies, the White House has stated that Musk is not in charge of DOGE. Instead, Amy Gleason is listed as the “acting administrator” of the department.

Lawsuits Against DOGE

Because of concerns over DOGE’s actions, including cutting programs and accessing sensitive government systems, several lawsuits have been filed to stop the team. Critics argue that DOGE operates without proper oversight, which is typically required for government agencies. The lawsuits claim that DOGE is violating the Constitution by doing things that should require approval from Congress or the Senate. To stop DOGE temporarily, plaintiffs need to show they are facing immediate harm. In one court case, Judge Tanya Chutkan said it was difficult to prove that harm had occurred just based on media reports about DOGE's actions. As a result, she denied a request to stop DOGE’s work for now. However, the case is still ongoing, and lawyers will continue to gather evidence.

Concerns About Security

Some judges, however, have raised concerns about DOGE’s access to sensitive information. Judge Jeannette Vargas temporarily blocked DOGE from accessing Treasury Department systems after learning that a former software engineer, Marko Elez, had left DOGE but might have accessed sensitive data before resigning. The Treasury Department was still reviewing his activities when the decision was made.

A Confusing Status for DOGE

DOGE's unclear status has led to confusion. Some judges have compared DOGE to a "Goldilocks entity"—an organization that isn't considered a government agency when it's inconvenient, but is treated like one when it could cause harm. Judge John Bates dismissed a request to block DOGE's actions, agreeing with the Trump administration's argument that DOGE is not an agency and therefore not subject to certain laws. This adds to the uncertainty about what DOGE actually is and how it should operate.The legal battles continue, and the role of Musk and DOGE will likely remain a topic of debate in the coming months.