The current US elections have made one thing strictly clear: the policies to uplift the US economy will take preference no matter what. Measures to curb the ongoing de-dollarization drives have already started to stir the economic structure as news of Trump unveiling plans to levy 100% taxes on countries moving away from the dollar went viral on all global fronts.
However, these stringent measures may have accompanied some severe repercussions. On the one hand, they may play a pivotal role in determining the prosperity of the United States. Still, at the same time, they may disrupt the global trade order by pushing these 5 ASEAN nations away, compelling them to ditch the US dollar.
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Trump Vows To Protect The US Dollar, Plan To Impose Taxes On Nations Ditching USD
Former US president Donald Trump has made several bold statements while participating in his electoral campaigns this season. In one of his rallies, Trump echoed calls to curb the raging de-dollarization drives by prioritizing the integrity of the US dollar.
He said he would levy a 100% tariff on countries moving away from the dollar. The statement has stirred a global debate, accusing Trump of disrupting the global trade order the US has established and maintained meticulously.
“If a country tells me, sir, we like you very much, but we are going to no longer adhere to being in the reserve currency. We are not going to salute the dollar anymore; I’ll say that’s okay, and you’re going to pay a 100% tariff on everything you sell into the United States.”
Trump’s latest stance on the US dollar has invited further scrutiny, with accusations that he has disrupted general trade ordeals.
“Trump says he will put 100% tariffs on countries abandoning the US dollar as world reserve currency. When you sanction and have to apply tariffs to bribe countries to use the dollar, you’ve officially reached sh*tcoin status.”
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Trump Musk Duo: What’s Happening?
In addition, Trump supports Elon Musk, offering him the opportunity to perform the official cabinet budgeting duties.
“I will create a government efficiency commission tasked with conducting a complete financial and performance audit of the entire federal government,” he said during a speech at the Economic Club of New York, adding Musk has “agreed to head that task force.” CNBC shared.
The Tesla chief was noted responding yes to a user on X who had briefly pinned down the anatomical overhaul that Trump and Musk are planning to execute if they come into power.
“If Trump succeeds in forcing through mass deportations. Combined with Elon hacking away at the government, firing people, and reducing the deficit. There will be an initial severe overreaction in the economy. This economy was propped up with debt (generating asset bubbles) and artificially suppressed wages (as a result of illegal immigration). Markets will tumble. But when the storm passes and everyone realizes we are on sounder footing, There will be a rapid recovery to a healthier, sustainable economy. History could be made in the coming two years.
What Happens to ASEAN Nations Pledging Allegiance To Local Currency?
In the meantime, the global de-dollarization drives initiated primarily by alliances like ASEAN and BRICS may receive a severe blow if Trump assumes the presidency. ASEAN has long been discussing utilizing local currency for global transactions, actively proposing to reduce its dependence on the US dollar. If Trump’s import tax policy goes live, these five ASEAN nations may be severely affected by the change.
- Indonesia
- Thailand
- Malaysia
- Singapore
- The Philippines
Furthermore, ASEAN has also been experimenting with the Chinese Yuan, which could help the bloc battle stringent times if necessary. It is to be noted that trade metrics between China and ASEAN reached $596 billion in the first seven months of 2024.
“China’s exports to ASEAN countries accounted for 2.36 trillion CNY, reflecting 13.7% year-on-year growth, as reported by the GAC. This solidifies China’s role as ASEAN’s largest trading partner for the 15th consecutive year, while ASEAN has now been China’s top trade partner for four years in a row.” Khmer Times reported.
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