Trump’s Tariff Proposals Will Be the Nuclear Option in International Trade
Here’s how his proposals may affect you
Donald Trump is calling himself “the Tariff Man.” Here are the tariffs he says he will impose if he becomes president again:
100% tariffs for “de-dollarizing”
Trump has proposed a 100% tariff against countries that de-dollarize, that is, countries that trade with each other using currencies other than the dollar.
Most global trade has been based on the dollar since the end of World War II, and 59% of all official foreign exchanges were still dollar-based at the beginning of this year. However, China, India, Brazil, Russia, South Africa, and 16 other countries have already or are about to de-dollarize and are talking about a new world reserve currency to replace the dollar. That currency might be gold: China, Russia, and India have been purchasing a lot of gold lately.
De-dollarizing is occurring because these countries are worried about the dollar no longer holding its value. I can imagine they are worried. We should be, too. Our national debt is now going on $35.7 trillion, largely because of tax breaks for the rich that began during the Reagan administration and that both Bush and Trump increased.
