In his quest to make America great again, Donald Trump has highlighted what awaits the US should the dollar collapse. In a recent speech, Trump said, “If we lose the global reserve currency status of the dollar, we will become a third-world country!”
The reality of this happening is not far off the racks. BRICS is coming for America and its power as the global hegemony. Since Russia invaded Ukraine in 2022, America’s actions toward the former Soviet Union country have brought about the de-dollarization agenda that has taken root in current economies.
Trump says that losing the dollar’s power is the equivalent of losing the war, and “we can’t let that happen.” DJT also called out the American government for using sanctions against other countries.
“If we lose the global reserve currency status of the dollar, we will become a third-world country!”
— S.L. Kanthan (@Kanthan2030) September 7, 2024
— Trump explaining the dangers of US sanctions.
Nobody speaks blunt truth like him. 😆 pic.twitter.com/TVQVSUBYZJ
To that end, he says, “Look, you are losing Iran, you are losing Russia, and China is out there trying to get out their currency to be the dominant currency as you know it […] You are losing so many countries because of so many sanctions.”
Trump vows ‘100% tariff’ on countries ditching US dollar
Also, Trump has pledged to make it too costly for countries to move away from using the US dollar. He has added a new pillar to his tariff platform.
The Republican presidential nominee said at a rally in the battleground state of Wisconsin, “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.”
The statement comes after months of discussions between Trump and his economic advisers about how to penalize allies or adversaries who actively attempt to participate in bilateral trade in currencies other than the dollar.
According to sources familiar with the situation, export controls, currency manipulation charges, and tariffs have all been considered as options. Trump, who has long backed protectionist trade policies, claimed the currency has been “under major siege” for eight years.
Last year, China, India, Brazil, Russia, and South Africa held a summit to discuss de-dollarization. However, Trump has stated that he wants the dollar to remain the world’s reserve currency, a statement he reiterated at Saturday’s rally.
BRICS nations have been taking steps to ensure financial stability away from the dollar dominance. Russia’s economy has been thriving despite the US pressing sanctions. The country has skirted the sanctions and begun settling trade in local currency.
In Russia, the Chinese yuan has replaced the US dollar as the most widely used currency for cross-border trade. The Russian currency is also widely used in trade settlements, which helps keep the country’s economy afloat even during sanctions.
This year, the Russian economy has experienced significant growth in several areas. Industrial production and military manufacturing increased by 3.3% in July. In addition, the first-half GDP growth rate increased to 4.6%, up from 1.8% last year. Unemployment in Russia is also at a record low of 2.4% in 2024.
