Dollar is king: Trump defends its status as world’s dominant currency

US President Donald Trump issued a warning on Tuesday to countries seeking alternatives to the US dollar, saying he’s prepared to impose heavy tariffs on any nation that undermines its status as the world’s reserve currency.

Speaking during a Cabinet meeting at the White House, Trump emphasised the strategic importance of the dollar, describing any threat to its dominance as akin to an act of war. “Losing the dollar standard would be like losing a war, a major world war,” Trump said. “We would not be the same country any longer. And we’re not going to let that happen.”

He also threatened an additional 10% tariff on all Brics nations — Brazil, Russia, India, China, and South Africa — which have recently discussed building a new currency system to bypass the dollar in global trade.

“I’m just saying, if people want to challenge it, they can,” Trump continued, “but they’re going to have to pay a big price. And I don’t think any of them are willing to pay that price.”

Trump also aimed at past US leaders. “If you have a stupid President like the last time, you would lose the standard. You won’t have dollars here, and we lost the world standard dollar,” he said. “That would be like losing a war.”

Reaffirming his commitment to aggressive trade policy, Trump declared, “The dollar is king. We’re gonna keep it that way.”

He also pointed to the looming August 1 deadline for newly announced tariffs targeting countries that, according to Trump, have long imposed “ridiculous” duties on American products. “I called those other countries, and now everyone is willing to give us everything,” he said. “For years, they ripped us off, and we didn’t have a President that understood it.”

On Monday, the US President imposed a 25% tax on goods imported from Japan and South Korea, as well as new tariff rates on a dozen other nations that would go into effect on Aug. 1.

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With inputs from Reuters

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