Allianz Global Investors expects the dollar's rally to reverse in early 2021 due to potential trade measures from China in response to Donald Trump's tariff threats.

Greg Hirt, the firm's chief investment officer for multi-asset strategies, warns that the impact of these tariffs on the US economy may be underestimated by the markets.

Hirt suggests that there is a significant risk of these retaliatory tariffs being implemented shortly after Trump takes office in January. This could hinder further strengthening of the US dollar and cause investors to reconsider their positions in light of the changing trade landscape.