US President Donald Trump recently took to his social media platform, Truth Social, and hit out at countries trying to move away from the US dollar. President Trump said that he would impose 100% tariffs on countries giving strength to the de-dollarization movement.

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Trump Shutting Down The BRICS Currency

The BRICS bloc of nations is spearheading the de-dollarization movement. Speaking about the possibility of BRICS nations creating an internal currency, President Trump stated, “We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs.“

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Can Trump’s Tariff Threat Save The US Dollar From De-Dollarization?

Tariffs are one of President Trump’s strongest weapons. The US announced additional taxes on Canada and Mexico over the last few days to combat trade deficits and illegal border crossings, respectively. The tariffs were paused for 30 days after constructive talks with both parties.

Despite the de-dollarization movement taking hold, the US dollar continues to be the global currency. According to a study by the Atlantic Council’s GeoEconomics Center, the greenback is still the world’s primary reserve currency.

Countries like Russia and Iran have been pushed out of the dollar system. They are bound to use national currencies for mutual trade. Other unsanctioned nations will have a lot to lose if heavy tariffs are levied. India, South Africa, and Brazil are developing nations that need strong friendships with the US for continued growth. It is unlikely that these three nations will fully support moving away from the US dollar.

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In summary, there is a possibility that Trump’s tariffs threat may bring the US dollar back into the spotlight.