Donald Trump vowed on Saturday to make it prohibitively expensive for countries to abandon the U.S. dollar, introducing a new element to his trade tariff policies. At a rally in the key battleground state of Wisconsin, Trump said, “If you move away from the dollar, you won’t be doing business with the U.S., because we’ll impose a 100% tariff on your goods.”
This announcement follows months of internal discussions between Trump and his economic advisers on ways to penalize countries that opt to trade in currencies other than the dollar. Potential measures have included export controls, accusations of currency manipulation, and tariffs, according to sources familiar with the talks.
Trump, a longtime advocate of protectionist trade measures, stated that the U.S. dollar has been “under major siege” for the past eight years. Countries like China, India, Brazil, Russia, and South Africa discussed reducing reliance on the dollar at a summit last year. In contrast, Trump reaffirmed his commitment to keeping the dollar as the world’s primary reserve currency.
Although the dominance of the dollar has diminished in recent decades, it still made up 59% of global foreign exchange reserves in early 2024, with the euro coming in second at nearly 20%, according to the International Monetary Fund.
Wisconsin is a critical swing state in the race between Trump and Democratic candidate Kamala Harris. Both are vying for the support of working-class voters who are skeptical of President Joe Biden’s economic policies and attracted to Trump’s populist stance. A recent Bloomberg News/Morning Consult poll showed Harris leading Trump by 8 percentage points in Wisconsin, her largest advantage among the seven battleground states surveyed.
Trump’s rally in Wisconsin concluded a campaign trip that also included stops in Pennsylvania, North Carolina, and New York City, where he delivered an economy-centered speech. Meanwhile, Harris spent Saturday in Pennsylvania preparing for an upcoming debate with Trump, a key moment in their tight race.
