As the 2024 US Presidential elections scheduled for November draws closer, former President and current Republican candidate for the election, Donald Trump has pledged to fine tune the economic policies of the nation such that countries that want to shift from the US Dollars will find it difficult.
“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,” Donald Trump said. But why did he say this?
It is without doubt that Donald Trump’s campaign move is bold and has opened him to worldwide criticism which could impact the outcome of the forthcoming US presidential elections. Regardless of this, the former president and Republican’s presidential candidate emphasized that countries attempting to transition to non-dollar currencies, such as China and Russia, pose a threat to American dominance.
Trump’s trade tariffs proposal is seen as part of his strategy to maintain control over global trade and penalize nations that move towards alternative currency agreements like the BRICS bloc, which is actively working to reduce reliance on the U.S. dollar.
Economic Implications
If Donald Trump emerges as the 47th president of the United States of America and executes his economic policies which is a 100% tariff, it would increase the cost of goods imported from affected countries, possibly triggering a trade war. For nations dependent on trade with the U.S., this could lead to higher prices of goods and services, restricted access to key markets, and disruptions in the global supply chain.
On the flipside, the introduction of Trump's trade tariffs could backfire by accelerating independence away from the U.S. dollar.
Already, since countries such as China, Russia, and Brazil are working together to reduce dependence on the dollar in favor of local currencies or alternatives such as the Chinese yuan, a 100% tariff could encourage more countries to rely less on the US dollars, causing the currency to lose its supremacy even more.
U.S. Domestic Impact
We can tell that Trump's economic policies, including the proposed tariffs, are designed to protect U.S. interests and encourage American manufacturing.
However, higher tariffs on foreign goods would eventually drive up consumer prices in the U.S. and possibly create inflation. Additionally, countries affected by the tariffs could retaliate by imposing their own trade barriers that might further complicate international relations.
Key Issues of the 2024 U.S. Presidential Elections
Donald Trump has positioned himself as the candidate who has the best interest of the USA at heart and would go any length to protect American jobs and industries.
But here is the thing; Donald Trump’s position will bring him face-to-face with scrutiny from economists and international relations experts, and this may have a negative influence on his electoral candidacy, especially when it becomes clear that a 100% tariff would be counterproductive for the country.
Wrapping Up
Trump’s proposed 100% tariff on goods from countries rejecting the U.S. dollar shows that he's committed to economic nationalism and safeguarding the dollar's global dominance. Just as acted out in his previous tenure, Donald Trump’s policy is “America First."
However, a 100% tariff on goods carries risks, both in terms of domestic inflation and international retaliation.
As the Presidential race heats up, this economic policy is sure to be a key talking point, with voters and economists alike debating its long-term consequences for both the U.S. and global economies.