- Former President Donald Trump has voiced his concern that the United States is losing its global influence as an increasing number of countries move away from the US dollar.
- In a recent interview on the All-In Podcast YouTube channel, Trump elaborated on the advantages of tariffs for the US economy and its political standing.
- Trump emphasized that tariffs could counteract the growing trend of de-dollarization by providing both economic and political leverage for the United States.
Learn why Donald Trump believes tariffs are crucial for the US amid rising global de-dollarization trends.
De-Dollarization: A Threat to U.S. Economic Power
In his discussion, Trump articulated that tariffs offer the United States not just financial benefits but also political advantages. He pointed out that tariffs could mitigate the adverse effects of de-dollarization — the gradual decline in the use of the US dollar in global trade. According to Trump, tariffs serve as a powerful tool, enabling the country to wield influence over others, especially in non-economic matters. While he called the US the “big piggy bank,” Trump warned that this stature is at risk due to the diminishing global use of the dollar.
Global Shift: Moving Away from the Dollar
Trump cited several countries, including Russia, China, Ukraine, Iran, and Saudi Arabia, that are either ditching the dollar or considering alternatives. He labeled this development a “tragedy” and warned of its severe implications. Earlier this year, reports revealed discussions between Russia and several Islamic nations to form an independent financial system, excluding the US dollar. Additionally, financial giant JPMorgan noted that the trend of de-dollarization was accelerating, as central banks worldwide were divesting from US dollar assets.
Economic and Political Ramifications
Analyzing Trump’s statements reveals a broader concern about the potential decline in US global dominance. The trend of de-dollarization is not just an economic issue but also one that could affect the US’s geopolitical influence. With lesser reliance on the dollar, countries might become more autonomous in making strategic decisions, potentially sidelining US interests. Tariffs, as proposed by Trump, provide a method to counteract these losses. By imposing tariffs, the US could potentially reclaim a measure of control and reassert its political and economic clout.
Conclusion
Trump’s remarks underscore a significant challenge facing the United States: the global shift away from the US dollar. His advocacy for tariffs highlights a strategy aimed at preserving US economic and political power in an evolving global landscape. As more countries seek alternatives to the dollar, the US must explore robust economic policies to maintain its influence. This de-dollarization trend poses a substantial threat, which, if not addressed, could mark a decline in America’s global hegemony.
