Donald Trump fiercely advocates for the currency revival plan in the ongoing US elections, a carefully curated idea that may rejuvenate the US dollar’s prestige.
The former US president has vowed to protect the USD’s prestige by announcing a new plan to levy a 100% tariff on countries moving away from the US dollar.
But will it be worth it in the long haul? Will it help the US Dollar blossom, or will it plummet further down the drain? Let’s find out.
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US Election: Trump’s New Dollar Revival Plan
Donald Trump, in one of his rallies in Wisconsin, announced a new approach to protecting the US dollar from declining globally.
Trump shared that if he becomes president again, he will levy a 100% tariff on countries that have decided to move away from the US currency. This plan was carefully curated after several economists’ discussions and is intended to protect the dollar from further global harm.
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This roughly entails imposing heavy taxes on countries that are actively exploring the idea of de-dollarization. This includes alliances like BRICS and ASEAN, which build alternate currency narratives to move away from the dollar.
However, in a new turn, Trump’s plan to rejuvenate the USD might backfire, as it may compel nations to reduce their long-term trade interactions with the US.
At the same time, if implemented after the US elections, the new tariff policy may harm businesses that heavily rely on imports from other nations. This can impact the profitability factor of such nations, including their competitive and entrepreneurial spirit.
Among other global repercussions, a 100% tariff plan would soil the US’s relationships with other regions. This development may discourage global nations from interacting with the US and push them towards finding nations with a neutral stance and momentum.
ASEAN: A Lifesaver Among Rapid Geopolitical Changes?
At the same time, ASEAN is vying to become a neutral nation and may become centre stage for alternate goods and services. Malaysian Trade Minister Tengku Zafrul Aziz, in one of his interviews in Hong Kong, shared how ASEAN nations being neutral entities can serve a bigger economic purpose for the world.
“In a world where supply chain reconfiguration is geopolitically motivated. Many global companies and MNCs also need a neutral, peace-loving partner. That partner is Asean,” Aziz later shared.
ASEAN is emerging as one of the world’s power hubs, attracting holistic global attention in the process. The bloc is attracting a rapid increase in FDI metrics, with $224 billion in 2022.
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“It will not be an easy task politically—in the long run, we will all be winners. but some will win more than others… But this is far better for ASEAN’s aggregate good. Than for everyone to compete on their own and lose alone,” Aziz said on Friday.
