Trump’s Bold Promise: Unyielding 100% Tariff Against Nations Rejecting the Dollar – A Game-Changer for US Elections
Trump Threatens Tariffs to Protect Dollar Amid Campaign Rally in Wisconsin
Donald Trump, known for his protectionist trade policies, vowed on Saturday to make it prohibitively expensive for countries to abandon the US dollar. Speaking at a rally in the swing state of Wisconsin, Trump stated, "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."
This declaration comes after months of discussions between Trump and his economic advisers on penalizing allies and adversaries who engage in bilateral trade using currencies other than the dollar. Potential measures include export controls and currency manipulation charges.
Trump emphasized that the dollar has been "under major siege" for the past eight years, citing a summit last year where China, India, Brazil, Russia, and South Africa explored de-dollarization. Despite this, Trump reaffirmed his commitment to maintaining the dollar as the world’s reserve currency.
While the dollar’s dominance has decreased over recent decades, it still accounted for 59% of official foreign-exchange reserves in the first quarter of 2024, with the euro trailing at nearly 20%, according to the International Monetary Fund.
In the critical battleground state of Wisconsin, Trump and his Democratic rival, Kamala Harris, are vying for the support of working-class voters dissatisfied with President Joe Biden’s economic policies. A recent Bloomberg News/Morning Consult poll showed Harris leading Trump by 8 percentage points in Wisconsin, her largest margin among the seven battleground states.
Trump’s Wisconsin rally concluded a campaign tour that included stops in Pennsylvania, North Carolina, and New York City. Meanwhile, Harris spent Saturday preparing in Pennsylvania for a crucial Tuesday debate with Trump, a pivotal moment in an intensely competitive race.
First Published: Sep 08, 2024 | 7:29 AM IST
Original Story https://www.business-standard.com/world-news/us-elections-trump-pledges-100-tariff-for-countries-that-shun-dollar-124090800060_1.html
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