Trump’s 100% Tariff Threat: Will the US Dollar Reign Supreme or Collapse Under Pressure?

By Bill Brocius

The stage is set. On one side, you’ve got the Democrats propping up Kamala Harris. On the other? Donald Trump, the man who could be storming his way back into the White House in 2024. But forget the political bickering for a moment—because what’s happening with the US dollar right now is far more important than any debate or scandal. Trump is making waves again, and this time, he’s gunning for the global financial system with a threat that could shift the very foundations of international trade.

The Greenback Gamble: Trump’s 100% Tariff Threat

As the world inches closer to de-dollarization, driven by powerful alliances like BRICS and ASEAN, Trump isn’t about to sit by and watch the greenback lose its crown. Instead, he’s doubling down, declaring a 100% tariff on any nation that moves away from using the US dollar as the world’s reserve currency.

In typical Trump fashion, his message was blunt and simple: “If a country tells me, ‘Sir, we’re not saluting the dollar anymore,’ I’ll say that’s okay, and you’re going to pay a 100% tariff on everything you sell into the United States.”

That’s not just rhetoric—that’s economic warfare. With nations like China, Russia, and even some European countries eyeing alternatives to the US dollar, Trump is swinging a sledgehammer at anyone looking to weaken America’s stranglehold on global currency markets.

Why Trump’s Plan Matters (And Why It Might Blow Up)

It’s no secret that the US elections play a significant role in how the world financial markets move. Right now, speculators are betting big on Trump winning the election, and in turn, they’re betting on the dollar climbing to new heights. As of today, the dollar sits at 103.62, slightly up, but that’s just the beginning.

Should Trump take office, we’re looking at a massive shakeup. On the surface, a 100% tariff on nations ditching the dollar sounds like a patriotic move to keep America on top. But let’s not fool ourselves—this could backfire, and hard. While Trump’s plan is designed to strong-arm countries into sticking with the USD, it could also lead to a trade war that would make the 2018 tariffs look like child’s play.

Consider China, the world’s second-largest economy and a long-time thorn in America’s side. If Trump slaps a 100% tariff on Chinese goods, we’re talking about a potential trade halt. The ripple effects would be catastrophic. Global supply chains, already fragile from years of pandemic-related disruptions, would likely crumble under the weight of such a policy. And Europe? Trump’s plan could severely restrict trade flow, especially with nations like Germany, which rely heavily on exporting to the US.

But here’s the kicker: Trump isn’t wrong in saying that the dollar could benefit from all this chaos—at least in the short term. Tariffs drive up prices, which could theoretically pump value back into the dollar as nations scramble to secure US currency reserves to maintain trade ties. But how long can that last before the system cracks under the pressure?

The De-Dollarization Threat

We need to talk about the elephant in the room: de-dollarization. For decades, the US dollar has been the undisputed king of global finance. Every major transaction, every major deal, has relied on the greenback. But that dominance is under siege, and not just from fringe nations.

BRICS, the economic alliance of Brazil, Russia, India, China, and South Africa, is making serious moves to establish an alternative global currency. And ASEAN—Southeast Asia’s powerhouse—is talking up the use of local currencies for trade. Trump’s tariff threat might stave off this tidal wave for now, but make no mistake, the shift away from the dollar is already happening. Whether it's trading in yuan, euros, or even cryptocurrencies, the world is seeking an escape from the US dollar's grip.

Trump knows it, and his tariff plan is a last-ditch effort to hold the line. But once again, the question is: Can the dollar remain the world’s reserve currency through brute force? Or is the entire system built on a house of cards that’s about to topple?

What’s Next?

As the 2024 election inches closer, we’re going to see more of these hardline policies from Trump, all designed to flex America’s economic muscle and halt the de-dollarization movement in its tracks. But here’s what we really need to watch: Will the global community push back against Trump’s tariffs, and if so, how hard? And if they do, what does that mean for America’s economic future?

Trump’s 100% tariff plan is just the opening salvo. The real battle for currency dominance is only beginning. If Trump wins the presidency and moves forward with these tariffs, we could see short-term gains for the US dollar—at the cost of long-term global instability. But make no mistake: The stakes here aren’t just about trade. They’re about the future of the US economy, the balance of global power, and the very survival of the dollar itself.

The Battle for the Dollar Begins—But at What Cost?

The world is watching. Trump’s tariff threats might put some fear back into nations thinking about ditching the US dollar, but they also risk sparking the biggest global economic crisis in modern history. Will the greenback rise from the ashes as Trump predicts, or will America’s dominance collapse under the weight of its own policies?

Stay tuned—because the next few months will decide whether the US dollar reigns supreme or crumbles into history’s dustbin.

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