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Trump to punish nations that move away from USD
Eccentric billionaire Donald Trump is back in the spotlight with bold statements. He claims that if countries abandon the US dollar in international trade, the United States will take decisive action. According to the former president and current Republican candidate, the US government will slap such countries with 100% tariffs. Thus, nations thinking about ditching the greenback may face tough consequences.
Trump insists that any country rejecting the greenback will face tariffs on their goods. He also promised to protect the dollar’s status as the world’s reserve currency. However, some experts think Trump’s plan could backfire if these tariffs target Chinese imports.
There is a chance Trump and his team might use this as a bargaining chip in negotiations, applying pressure and even engaging in blackmail, analysts suggest.
Currently, Trump’s advisors are weighing options on how to punish BRICS countries for ditching the US dollar in global trade. These options include export controls and accusations of currency manipulation. Previously, Senator Marco Rubio of Florida proposed sanctions against financial institutions using China’s CIPS, Russia’s SPSF, and Iran’s SEPAM—alternatives to the SWIFT payment system.
According to Asia Times analysts, sanctions against Russia are already making the dollar less attractive as a global reserve currency. They believe the situation could worsen and lead to the collapse of the dollar. The publication referenced US Treasury Secretary Janet Yellen, who admitted that sanctions on Russia had confused countries holding dollar reserves.
Diane Sare, an independent candidate for the New York Senate, has also pointed out that US policies have contributed to the de-dollarization of the global economy. She argues that the US has triggered this process with its own actions. Sare suggests that the US should now move towards a currency basket and fixed exchange rates to close the loophole for currency speculation that harms national economies.
Published 13 September 2024
© InstaFintech Group
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© InstaFintech Group
