“You leave the dollar and you’re not doing business with the United States because we are going to put a 100 percent tariff on your goods,” Trump declared, underscoring his protectionist stance.This threat is part of a broader tariff platform aimed at countering efforts by countries like China, India, and others to de-dollarize their trade.
The announcement follows extensive discussions between Trump and his economic advisers about how to penalize nations engaging in trade with currencies other than the dollar. Possible measures have included export controls, currency manipulation charges, and tariffs, as reported by Bloomberg News.
Trump, who has consistently championed protectionist policies, asserted that the dollar has been “under major siege” for the past eight years. This stance comes in the wake of a recent summit where China, India, Brazil, Russia, and South Africa explored de-dollarization strategies. Trump, however, reaffirmed his commitment to maintaining the dollar as the world’s reserve currency.
Despite a gradual decrease in dollar dominance, the US currency still represented 59% of official foreign-exchange reserves in early 2024, according to the International Monetary Fund. The euro follows with nearly 20%.
In the fiercely contested race for the White House, Wisconsin is a key battleground state where Trump and Democratic rival Kamala Harris are vying for the support of working-class voters disillusioned with President Joe Biden’s economic policies. A recent Bloomberg News/Morning Consult poll shows Harris leading Trump by 8 percentage points in Wisconsin, the largest margin in the seven battleground states surveyed.
Trump’s rally in Wisconsin capped off a campaign swing that included stops in Pennsylvania and North Carolina, as well as a significant address in New York City focusing on economic issues. Meanwhile, Harris spent Saturday in Pennsylvania preparing for her upcoming debate with Trump, a critical event that could influence the tight race.
As Trump’s campaign continues to emphasize economic nationalism and defense of the dollar, the global implications for countries like India, which has been part of de-dollarization discussions, remain significant. The unfolding dynamics between the US and its international trade partners will likely be a key focus in the months leading up to the election.