The political drama in the US is unfolding with new details each day. Both the US presidential candidates, Kamala Harris and Donald Trump, are amping up their efforts to woo the US citizens. In this quest, a spree of promises is being made to make America “great’ again, with Trump inching a mile ahead to share a new status update on the US dollar.
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Trump’s Currency Protection Plan
In one of his latest meetings, Donald Trump, the leading US presidential candidate, has once again clarified his economic stance, stating how crucial it is for him to stabilize the value of the US dollar. In a video snippet making the rounds on X, Trump commented about protecting the US dollar hegemony by reinstating his bold statement of putting 100% tariffs on countries moving away from the dollar.
He later shared how he will not tolerate the devaluation of the US dollar or agendas that promote ditching the US dollar in the long haul.
“If a country tells me, sir, we like you very much, but we are going to no longer adhere to being in the reserve currency. We are not going to salute 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.”
Trump’s recent stance on USD is currently inviting heavy scrutiny. Several social media sleuths have criticized Trump’s stance, outlining an authoritative undertone within the statements as mentioned earlier.
“Trump says he will put 100% tariffs on countries abandoning the US dollar as world reserve currency. When you sanction and have to apply tariffs to bribe countries to use the dollar, you’ve officially reached sh*tcoin status.”
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American Currency Tariff Plan and ASEAN
Trump’s US dollar tariff plan is sending ripples of transformation globally. The message is specifically for alliances like BRICS and ASEAN that have actively been trying to ditch the US dollar and sabotage its status as the reserve currency. However, Trump’s plan to save the dollar might backfire, causing more erosion of the US dollar in the long haul.
For instance, this development can evolve into a global trade war, which may trigger economic uncertainty worldwide. This could weaken investor confidence in the dollar and disrupt age-old established trade momentum within various countries. This development may be particularly harmful for countries that depend holistically on the US dollar.
ASEAN countries have long been trying to end their reliance on the US dollar. This development may further compel ASEAN to devise other alternatives and look for other currencies that may challenge the growing USD hegemony. These five ASEAN nations might be the first to move away from the dollar, provided Trump’s tariff plan materializes shortly.
- Indonesia
- Thailand
- Malaysia
- Singapore
- The Philippines
The 10-nation bloc has long been trying to promote intercultural trade by focusing on strengthening its inner ties. At the same time, these nations are also banking on the Chinese Yuan, which could become their next best alternative if this tariff plan comes into action.
“One of the key factors driving the appeal of the renminbi in Southeast Asia is its demonstrated stability. Amidst the substantial depreciation experienced by other major currencies. This stability has bolstered confidence in the renminbi as a reliable and resilient currency for trade and investment activities within the region. As of April 2023. China’s foreign exchange reserves have increased to USD 3.205 trillion, surpassing market expectations of USD 3.192 trillion. According to data from the International Monetary Fund (IMF), the USD’s share dropped to 58.4% by the end of Q4. Which marks the lowest share of global reserve currencies held in dollars since 1994.”
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