Donald Trump, the Republican presidential nominee, has escalated his trade war rhetoric, vowing to make it financially crippling for countries to shift away from using the US dollar in their bilateral trade. During a rally in the pivotal swing state of Wisconsin, Trump declared, “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.” This aggressive statement follows months of behind-the-scenes discussions between Trump and his economic advisors on strategies to penalize nations that seek alternative currencies for trade, be they allies or adversaries. Options on the table have included export controls, accusations of currency manipulation, and hefty tariffs, according to sources familiar with the matter. Trump, a long-time champion of protectionist trade policies, has expressed concerns about the dollar’s weakening position, claiming it has been “under major siege” for the past eight years. Notably, countries like China, India, Brazil, Russia, and South Africa have openly discussed de-dollarization at a summit last year. Despite this, Trump has consistently reiterated his desire for the dollar to remain the world’s dominant reserve currency, reaffirming this commitment at Saturday’s rally. While the dollar’s supremacy has undeniably diminished in recent decades, it still holds a substantial 59% share of official foreign-exchange reserves in the first quarter of 2024, according to the International Monetary Fund. The euro follows a distant second at nearly 20%. The race for the White House remains fiercely competitive, with Wisconsin emerging as one of the most crucial battlegrounds. Trump and his Democratic challenger, Kamala Harris, are locked in a tight contest for the support of working-class voters in the state. These voters are uneasy about President Joe Biden’s economic policies and are drawn to Trump’s populist appeal. A recent Bloomberg News/Morning Consult poll revealed that Harris currently enjoys an 8-point lead over Trump in Wisconsin, the most significant lead she holds among the seven key swing states surveyed. Trump’s Wisconsin rally was the culmination of a campaign swing that included visits to Pennsylvania, North Carolina, and his hometown of New York City, where he delivered an economy-focused speech and hosted a press conference. Meanwhile, Harris spent Saturday in Pennsylvania preparing for Tuesday’s debate with Trump, a pivotal moment that could significantly alter the course of this tight race. The upcoming debate is expected to be a defining moment, potentially shifting the momentum in this closely contested election.
