This statement reflects growing global efforts, notably by BRICS nations—Brazil, Russia, India, China, and South Africa—to advance "de-dollarisation." These countries have actively explored mechanisms such as trade in local currencies and discussions about a shared reserve currency to reduce their dependence on the dollar. China, for instance, has encouraged bilateral agreements using the yuan, while India has explored using the rupee for international trade settlements.
Trump asserted that the dollar's status as the world's dominant reserve currency has been under siege for nearly a decade. He linked these challenges to policies of the Biden administration, suggesting a loss of influence globally. His proposed tariffs aim to dissuade countries from bypassing the dollar, emphasizing its critical role in underpinning US economic strength.
Global de-dollarisation efforts have faced substantial hurdles, primarily due to the entrenched position of the dollar in international finance and trade. Despite ongoing discussions, achieving consensus among nations on common monetary policies or establishing a unified currency has proven elusive. The dollar continues to account for a significant share of global reserves and trade transactions, underscoring its enduring dominance despite emerging challenges.
Economists and political analysts note that such aggressive tariff measures, if implemented, could lead to diplomatic strain and retaliation, particularly from key trade partners. They also raise concerns about potential disruptions to global markets and supply chains, as well as the broader implications for the US economy.