Despite Trump’s efforts to curb de-dollarization, his aggressive tariff policies may end up spearheading this phenomenon, with many nations contemplating a backup strategy to counter US tariffs. In this wake, two reputed nations, Iran and Russia, have already pioneered this agenda, rerouting trade routes to conduct trade in local currency rather than relying heavily on the volatile US dollar.
Also Read: Trump’s Tariffs Trigger De-Dollarization – Central Banks Rush to Buy Gold at ATH!
Iran and Russia Strengthen Ties Amid Global Chaos, Ditch USD In Unison
Iran and Russia have long been trading in local currencies, an agenda that is capable of giving stiff competition to the US dollar. In one of his recent interviews, Iranian ambassador to Russia Kazem Jalali stated that nearly 60% of the trade between Russia and Iran is now conducted in rials and rubles.
“More than 60% of bilateral trade is in rubles and rials,” Jalali added, emphasizing how both nations are currently experiencing a “golden age” of trade.
Iran and Russia share a deep trade relationship, which has blossomed and strengthened over time. Iran exported nearly 1.053 million tons of goods to Russia last year, displaying the strong ties that both nations share in the trading domain.
In addition to this, Iran and Russia are also busy building new infrastructure to enhance trade routes in efforts to end their reliance on Western markets. This phenomenon would ultimately result in low US dollar dependence, sparking de-dollarization-centric concepts to gain momentum at a rapid pace.
Also Read: 10 ASEAN Countries Ready to Trade in Local Currencies & Not US Dollar
Deputy Chair Of Security Council Of Russian Foundation Responds To Current US Tariffs Scenario
Dmitry Medvedev, Deputy Chair of the Security Council of the Russian Federation, tweeted a new post on the current US tariff scene. He shared that the US economy is decaying, with rapid erosion happening on a macro level.
“As it is, Russia barely does any trade with the US and EU; nearly all of it is under sanctions. Yet, our economy is growing 3% now. We’ll take the advice of Lao Tzu and sit by the river, waiting for the body of the enemy to float by. The decaying corpse of the EU economy.”
As it is, Russia barely does any trade with the US and EU, nearly all of it is under sanctions. Yet, our economy is growing 3% now. We’ll take the advice of Lao Tzu and sit by the river, waiting for the body of the enemy to float by. The decaying corpse of the EU economy
— Dmitry Medvedev (@MedvedevRussiaE) April 3, 2025
Alongside that, Trump’s aggressive tariff policies are also compelling nations to figure out a backup strategy, which may include less dependence on the dollar, spurring de-dollarization in the long run.
Also Read: US Economy: Donald Trump Reveals The Future Of D.O.G.E & Elon Musk