If you leave the dollar, you won’t be able to do business with the United States because we put a 100 percent tariff on goods.
– said the Republican presidential candidate at a rally held in the state of Wisconsin.
The statement followed months of discussions between Trump and his economic advisers on how to penalize countries that actively seek to engage in bilateral trade in currencies other than the dollar.
Trump, a long-time supporter of protectionist trade policies, said the dollar had been under “great siege” for eight years. China, India, Brazil, Russia and South Africa discussed de-dollarization at a summit last year. In contrast, Trump has said he wants the dollar to remain the world’s reserve currency, a point he reiterated at Saturday’s rally.
Although the dominance of the dollar has declined in recent decades, the US currency still accounted for 59% of official foreign exchange reserves in the first quarter of 2024, with the euro in second place at nearly 20%, according to the International Monetary Fund.
Cover image credit: Spencer Platt/Getty Images
Source: www.portfolio.hu
