Trump threatens ‘100% tariff’ on countries ditching US dollar

Donald Trump pledged on Saturday to make it too costly for countries to shift away from using the US dollar, adding a new pillar to his tariff platform.

“You leave the dollar and you’re not doing business with the United States because we are going to put a 100 per cent tariff on your goods,” the Republican presidential nominee said at a rally in the battleground state of Wisconsin.

The statement follows months of discussions between Trump and his economic advisers on ways to penalise allies or adversaries who seek active ways to engage in bilateral trade in currencies other than the dollar.

Options have included export controls, currency manipulation charges and tariffs, people familiar with the matter have previously told Bloomberg News.

Trump, who has long embraced protectionist trade policies, said the dollar has been “under major siege” for eight years. China, India, Brazil, Russia and South Africa discussed de-dollarisation at a summit last year. By contrast, Trump has said he wants the dollar to remain the world’s reserve currency, a pledge he renewed at Saturday’s rally.