Trump vows 100% tariff on countries ditching Dollar in trade

Former U.S. President and Republican candidate in the upcoming November presidential election, Donald Trump, announced during a rally in Wisconsin that if he wins, he will impose a 100 percent tariff on goods from countries that abandon dollar-based trade, Bloomberg reported.

"You leave the dollar, and you're not doing business with the United States because we are going to put a 100% tariff on your goods," Trump declared during Saturday's meeting with voters in the northern U.S. state.

Bloomberg noted that this statement follows months of discussions between Trump and his economic advisors on how to penalize countries that seek to engage in international trade using currencies other than the dollar.

Trump, who has long advocated for protectionist trade policies, stated that the dollar has been "under major siege" for eight years. Bloomberg noted that China, India, Brazil, Russia, and South Africa are leading discussions on ways to "de-dollarize" global economic relations.

Trump has said he wants the dollar to remain the world’s reserve currency, a pledge he renewed at Saturday’s rally, the agency added.

The International Monetary Fund stated that in the first quarter of 2024, the U.S. currency still comprised 59 percent of official global currency reserves, while the euro came in second with 20 percent.

Wisconsin is one of the swing states, playing a crucial role in the electoral race between Trump and Democratic candidate Kamala Harris. The U.S. presidential election will take place on November 5, 2024.