IMPORTANT POINTS:
- Trump warns about global de-dollarization: Former president warns about the loss of influence of the dollar.
- Advantages of tariffs: Trump highlights economic and political benefits of tariffs.
- Movements towards financial independence: Countries like Russia and China are looking for alternatives to the dollar.
Donald Trump Warns of Loss of US Influence and Global Dedollarization
Former President Donald Trump has expressed concern about the United States’ declining influence on the global stage as more countries move away from the dollar.
In a recent interview on the All-In Podcast YouTube channel, Trump explained how tariffs provide a significant advantage to the United States over other nations. According to Trump, tariffs not only offer economic benefits, but also political advantages.
“I’m a big believer in tariffs because I think they give you two things. They give you economic gain, but also political gain. “If a country is out of control and there is something that has nothing to do with the economy or money coming in or going out, but other very political things, you have tremendous power over a country.”
Trump stressed that the United States has a considerable advantage due to its large “piggy bank,” but warned that this advantage is constantly shrinking as global power and influence is lost.
The Problem of Dedollarization
Trump expressed concern about the de-dollarization trend, in which countries such as Russia, Ukraine, China, Iran and Saudi Arabia are exploring the use of other currencies. Trump emphasized the seriousness of this situation, comparing it to the loss of a war.
“We are losing many countries from the dollar. They are dropping like flies. If we ever lose that, it’s the equivalent of losing a war. That would really make us a third world country. “We have lost so many countries.”
Global Movements towards Financial Independence
In May 2023, reports emerged that Russia and Islamic nations were discussing creating an independent financial system to move away from the dollar. A month later, banking giant JPMorgan warned that the de-dollarization trend was gaining momentum as central banks around the world were reducing their US dollar reserves.
Trump’s remarks underscore growing concern about the United States’ loss of influence in the global economy. With more countries seeking alternatives to the dollar, the United States’ tariff strategy and economic policy will be crucial to maintaining its dominant position on the world stage.
