President Trump Vows to Place 100% Tariff on Countries Not Doing Business on the US Dollar

During a rally in Wisconsin on Saturday, President Trump declared his intention to impose a 100 percent tariff on goods from countries that move away from dollar-based trades.

This announcement comes after years of Joe Biden and the Democrats’ actions weakening the US dollar’s position in the international arena.

The president’s decision follows a trend of foreign powers, led by China’s Xi Jinping, establishing economic trade policies with emerging markets using currencies other than the US dollar.

In response to this challenge, Trump has vowed to make it prohibitively expensive for countries to shift away from the US dollar.

During his rally speech, Trump warned that any country abandoning the dollar would face a hefty tariff on their goods if they sought to do business with the United States.

This stance echoes his recent discussions with economic advisers about how to penalize allies or adversaries engaging in bilateral trade using currencies other than the dollar.

Options under consideration have included export controls, currency manipulation charges, and tariffs.

This is not the first time President Trump has made such statements; he recently made similar remarks at the Economic Club of New York.

In contrast, he drew a clear distinction between his approach and that of Kamala and Joe Biden, who have threatened US dollar dominance during their tenure in office.

South Africa's Foreign Minister Naledi Pandor says Saudia Arabia, United Arab Emirates, Egypt, Algeria, Argentina, Mexico, Nigeria, and other nations want to join BRICS.

Since the start of the US proxy war in Ukraine, BRICS nations have refused to https://t.co/p79OrHGWib… pic.twitter.com/j6LFKOtUjr

— KanekoaTheGreat (@KanekoaTheGreat) March 28, 2023

Was it always the intention of the Obama-Biden administration to diminish US global dominance? This seems to be happening rapidly now.

Under Biden, who is openly ridiculed internationally, traditional US allies are now aligning with China.

In March 2022, Saudi Arabia indicated that it might start using the Chinese yuan instead of the US dollar for future transactions.

Then in June, Joe Biden allowed the 50-year-old petrodollar agreement between the US and Saudi Arabia to lapse.

These significant developments, which could have serious implications for all Americans in the future, were completely overlooked by the leftist legacy media.

Tip Ranks reported:

The term “petrodollar” refers to the U.S. dollar’s role as the currency used for crude oil transactions on the world market. This arrangement has its roots in the 1970s when the United States and Saudi Arabia struck a deal shortly after the U.S. went off the gold standard that would go on to have far-reaching consequences for the global economy. In the history of global finance, few agreements have wielded as many benefits as the petrodollar pact did for the U.S. economy.

The petrodollar agreement, formalized after the 1973 oil crisis, stipulated that Saudi Arabia would price its oil exports exclusively in U.S. dollars and invest its surplus oil revenues in U.S. Treasury bonds. In return, the U.S. provided military support and protection to the kingdom. This arrangement was a win-win situation for both; the U.S. gained a stable source of oil and a captive market for its debt, while Saudi Arabia secured its economic and overall security.

Oil being denominated in U.S. dollars alone has significance beyond the categories of oil and finance. By mandating that oil be sold in U.S. dollars (DXY), the agreement elevated the dollar’s status as the world’s reserve currency. This, in turn, has profoundly impacted the U.S. economy. The global demand for dollars to purchase oil has helped to keep the currency strong, making imports relatively cheap for American consumers. Additionally, the influx of foreign capital into U.S. Treasury bonds has supported low interest rates and a robust bond market.

However, everything is coming to an end due to Joe Biden’s irresponsible economic and foreign policies.

The petrodollar’s expiration could weaken the U.S. dollar and, by extension, the U.S. financial markets. If oil were to be priced in a currency other than the dollar, it could lead to a decline in global demand for the greenback. This, in turn, could result in higher inflation, higher interest rates, and a weaker bond market in the United States.

Joe Biden is severely undermining the global standing of the US dollar in the economy all by himself.

It’s difficult to overstate the damage Joe Biden has inflicted on American life.

It seems like he is intentionally aiming to weaken our economy. Donald Trump is looking to rectify this situation and is counting on a victory in order to do so.