During a recent rally in Wisconsin, Donald Trump announced a bold plan to impose a 100% tariff on goods from countries that abandon the US dollar, a move that underscores his commitment to maintaining the dollar's dominance as the world's reserve currency.

Trump claims the dollar has been 'under major siege' for the past eight years due to global economic shifts, prompting discussions with his economic advisers about penalizing nations that engage in trade using currencies other than the dollar.

This tariff proposal adds a new dimension to Trump's existing protectionist trade policies, which are aimed at safeguarding the dollar's status in international trade.

His campaign emphasizes economic nationalism and the defense of the dollar, which has significant implications for countries currently engaged in discussions about de-dollarization.

Countries like China, India, Brazil, Russia, and South Africa have been exploring de-dollarization strategies, a trend that concerns Trump and his administration.

Leaders from the BRICS nations are actively advocating for alternative currencies to reduce reliance on the dollar, with Brazil's President Lula da Silva and Russia's President Vladimir Putin leading the charge.

The expanded BRICS bloc, now including countries like Saudi Arabia and the UAE, is expected to shift global oil market dynamics, potentially leading to oil trades conducted in local currencies.

At the rally, Trump reiterated his commitment to keeping the dollar as the world's reserve currency, emphasizing that abandoning the dollar means not doing business with the United States.

While Trump aims to maintain the dollar's global status, his proposed tariffs could paradoxically increase its value by reinforcing its importance in international trade.

Despite a gradual decline in the dollar's dominance, it still accounted for 59% of official foreign exchange reserves as of early 2024, according to the International Monetary Fund.

Geopolitical trends, including increased non-USD commodity trading and the development of alternative payment systems, could impact the dollar's hegemony, though significant changes are expected to take decades.

The rally in Wisconsin is particularly crucial as it is a key battleground state where Trump is competing against Democratic rival Kamala Harris, who currently leads him in polls by 8 percentage points.