Trumps views on Trade defecits

What does trump say about deficit

Said his trade defecit with Canada amounts to a 100 billiion dollar US subsidy to Canada

Whats a 51st state

Says the US doller must remain preminent international reserve currency

Due to brics Tump threatened a 100 percent tariff export to the us

How would US trade and current account deficits underpin the outsized international role of the US dollar

The trade and account deficits lead to a growing supply of US dollars, held in foreign hands .. When someone sells goods to us they are paid in USD which increases demand for the currency, reinforcing its status as the dominant global reserve currency.

What can the people holding USD do

Sell dollars and get their own currency back

Sell dollars to their own central bank,

How do other nations get USD

They have to work for them, they cant print them, this means selling more to THE US

Conclusion

As long as the US dollar remains the premier currency for reserve holdings and tradings, other countries will be happy to get more of the,

Q1: Why is Donald Trump's claim that U.S. trade deficits are bad inconsistent with his desire for the U.S. dollar to remain the top global reserve currency?

Because trade deficits help supply the world with U.S. dollars, which supports the dollar’s dominant role in international trade and reserve holdings

Q2: How do U.S. trade deficits support the international role of the U.S. dollar?

Foreign countries earn U.S. dollars by selling goods to the U.S. and often hold those dollars in reserves or use them in global trade, maintaining demand for the dollar.

Q3: What is meant by the term "exorbitant privilege" in reference to the U.S. dollar?

→ It refers to the U.S.’s unique advantage of being able to run trade deficits and still have its currency in high global demand, allowing it to finance its spending more easily.