Former President Donald Trump Promises Harsh Tariffs To Strengthen USD

Key Points:

• Former President Donald Trump pledged to impose a 100% tariff on countries that move away from using the US dollar in global trade to protect its status.
• The plan follows months of discussions with advisers amid growing de-dollarization efforts by countries like China, India, and Russia.

According to Bloomberg, former President Donald Trump said over the weekend that he would slap heavy tariffs on countries moving away from using the US dollar in global trade.

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Former President Donald Trump Vows 100% Tariffs on Countries Abandoning US Dollar

In a rally in Wisconsin, former President Donald Trump, the GOP presidential nominee, leaned into his proposal to cement the dollar’s position as the world’s reserve currency by making an alternative competing currency too expensive for any nation to use:

“You leave the dollar and you’re not doing business with the United States because we are going to put a 100% tariff on your goods,” Trump said, doubling down on his pledge for punitive protectionism.

The proposal comes after months of discussion between Trump and his economic advisers over how to punish countries, from allies to adversaries, that try to trade in non-dollar currencies.

In recent years, countries like China, India, Brazil, Russia, and South Africa have looked for ways to rely less on the dollar, a movement that Trump perceives as one threatening US economic dominance.

Trump said the dollar has been “under major siege” during the past eight years and promised to stem the tide. He said keeping the dollar on top in all international markets is one of the most salient features of his manifesto on economic issues.

Wisconsin Rally Highlights Key Battleground in 2024 Race

The Wisconsin rally comes as former President Donald Trump seeks to lock down working-class voters in the battleground state, where he faces off against Democratic rival Kamala Harris. Wisconsin continues to hold significant importance in the 2024 presidential contest, with both candidates seeking votes in a state that could decide it all.

A recent Bloomberg poll shows that Harris is leading Trump by eight percentage points in Wisconsin, a gap that marks her largest lead in critical swing states. Meanwhile, Harris spent the weekend in Pennsylvania preparing for her next debate against Trump, which could tighten a close contest.