Donald Trump told countries, “You leave the dollar, you’re not doing business with the United States, because we’re going to put 100% tariff on your goods”.
It’s such an idiotic ploy. It would basically force countries to choose whether they do business with US or China, and China is the bigger and more essential partner for most countries. Meanwhile, there’s zero chance that China would go back to using the dollar because that would give US huge leverage over China. This is basically going to be a redux of the west trying to isolate Russia economically where the scheme failed out of the gate when China and India refused to play ball.
It’s such an idiotic ploy. It would basically force countries to choose whether they do business with US or China, and China is the bigger and more essential partner for most countries. Meanwhile, there’s zero chance that China would go back to using the dollar because that would give US huge leverage over China. This is basically going to be a redux of the west trying to isolate Russia economically where the scheme failed out of the gate when China and India refused to play ball.
Well hopefully they wont try it again, but there were examples of what US did to countries trying to dedollarize: Libya and Iraq
That works against small isolated countries, but now there’s BRICS backed by Russia and China.