Donald Trump, the former President of the United States, warned that if the US were to lose a currency war against China, it would be tantamount to America losing a world war. He explained that if the U.S dollar were no longer the global reserve currency, the US would become a second-tier nation. Trump shed further light on how some countries like Brazil and Colombia, and blocs such as Iran and Russia, have already aligned themselves with China. France had recently held a meeting with China's president Xi Jinping and Trump weighed in on this, claiming that he would have threatened France if he were the president then. He stated that he had threatened to impose a 100% tariff on French wine, in response to France's plans to tax American companies.
Trump also advised that if the US dollar lost its dominance, it could be the biggest defeat for the US in its history. He even remarked that China was attempting to replace the dollar as the primary currency of the world and believed that the Biden administration will ‘probably’ be successful in their efforts. This is because the US dollar is seen as a foundation of their power and strength and the country taking its place would be a harsh pill for the US to swallow.
The US is engaging in competitors with China not only to protect their economic interests but also in multiple world issues that include climate change, human rights and also, public healthcare. All of these various jostling by the two nations have been taking place since the start of President Trump's term. However, with a new administration in place, the two countries might find more common ground rather than the constant state of competition.
The global currency war between the US and China can have numerous consequences. Both countries are well aware of just how important the US dollar's dominance is and that it can actually boost their respective oligopolies. The fate of the dollar’s international hegemony will significantly affect the well-being of many people around the world and for that reason, it is essential for adequate measures to be taken to prevent either side from emerging victorious.
Sophie Young
- 2023-04-16
Currency War Between US & China Could Lead to US Losing a World War
Donald Trump, the former President of the United States, warned that if the US were to lose a currency war against China, it would be tantamount to America losing a world war. He further explained how some countries and blocs are already aligning themselves with China, and advised that if the US dollar lost its dominance, it could be the biggest defeat for the US in its history.
