Donald Trump pledges '100% tariff' for countries that shun the US dollar

Donald Trump vowed on Saturday to make it prohibitively expensive for countries to move away from the US dollar, adding another element to his tariff-focused agenda.

“If you abandon the dollar, you won’t be doing business with the United States because we’ll impose a 100% tariff on your goods,” the Republican presidential candidate declared at a rally in Wisconsin, a key battleground state.

This comes after months of discussions between Trump and his economic advisers about ways to punish countries—whether allies or rivals—that seek to engage in bilateral trade using currencies other than the dollar.

Measures considered have included export restrictions, currency manipulation accusations, and tariffs, according to sources familiar with the talks, as reported by Bloomberg News.

Trump, a staunch advocate of protectionist trade policies, claimed the dollar has been "under serious attack" for the past eight years. China, India, Brazil, Russia, and South Africa explored "de-dollarization" at a summit last year. In contrast, Trump reiterated his commitment to maintaining the dollar as the world’s reserve currency during his Saturday speech.

While the dominance of the US dollar has declined over the years, it still made up 59% of global foreign-exchange reserves in the first quarter of 2024, with the euro coming in second at nearly 20%, according to the International Monetary Fund.