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- cross-posted to:
- [email protected]
WEST PALM BEACH, Fla. (AP) — President-elect Donald Trump on Friday added the 27 countries that make up the European Union to the list of trade partners he’s threatening with tariffs — unless the group takes steps to import more U.S. goods.
“I told the European Union that they must make up their tremendous deficit with the United States by the large scale purchase of our oil and gas,” Trump posted shortly after 1 a.m. on social media. “Otherwise, it is TARIFFS all the way!!!”
That’s unfortunately not gonna happen since the US has the world reserve currency but it looks like he’s doing his best to change that
The times when John Connally could tell European diplomats “The dollar is our currency, but your problem” are already nearly gone. The world’s currency reserves are currently at 59% US dollars, down from the year 2000’s 73%.
Sadly cannot expect it to change bit it would really be funny if the reserve currency changed to something else like the € for example.
We can expect it to change actually. We’ve known for decades that we’re entering another multi polar era. One of the biggest criticisms of GOP presidents since Reagan is their cavalier attitude to this fact. They keep trying to strong arm other countries like there’s no alternatives and every time they do that they generate political will to move away from the US in other countries.
Yeah, euro is a good candidate, inflation target is 2% and is pretty stable and widely accepted. The Mercosur deal might tip the scales pretty heavily towards the euro since Latin America uses mostly USD for international transactions.
The BRICS currency would also be a strong candidate if that ever happens.