Donald Trump, the Republican candidate for president, declared on Saturday that he would levy a 100% tariff on goods coming from nations that stop trading in US dollars. This idea is a component of Trump’s larger plan to thwart attempts by China, India, and other countries to dedollarize their trade. The declaration is made as Trump keeps pushing protectionist measures, claiming that the US dollar is “under major siege” and restating his commitment to keeping it as the reserve currency of the world.
Republican presidential nominee Donald Trump announced on Saturday his intention to impose a 100% tariff on goods from countries that move away from using the US dollar in international trade. This proposal forms part of Trump’s broader strategy to counter efforts by China, India, and other nations to de-dollarise their trade. The announcement comes as Trump continues to advocate for protectionist policies, insisting that the US dollar is “under major siege” and reaffirming his commitment to preserving its status as the world’s reserve currency.
Trump and his economic advisors have held lengthy discussions and explored a variety of measures to penalize countries that trade in currencies other than the dollar before coming to this announcement. These include taxes, charges of currency manipulation, and export restrictions, according to Bloomberg News.
For Trump, upholding the dollar’s hegemony is crucial. China, India, Brazil, Russia, and South Africa convened recently to discuss de-dollarization, which has intensified the economic message of his campaign. The International Monetary Fund reports that as of early 2024, the dollar still had a 59% share of official foreign exchange reserves, notwithstanding its gradual decline in dominance. According to TO, the euro was the next closest currency, holding about 20%.
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