Donald Trump’s recent call for lifting sanctions on Iran and Russia could reshape global economics and U.S. influence.
At a Glance
- Donald Trump advocates removing sanctions on Iran and Russia.
- The move aims to strengthen the U.S. dollar and prevent the rise of alternative financial systems.
- Sanctions were initially expanded under Trump’s administration but are now viewed as obstacles to U.S. economic dominance.
- Potential geopolitical implications include a shift in international trade dynamics and strengthened U.S. relations with global partners.
Trump’s Shift on Sanctions
During a speech at The Economic Club of New York, Donald Trump proposed lifting existing sanctions on Iran and Russia to bolster the U.S. dollar’s strength and restore its global influence. Trump argued that current sanctions push these nations towards creating alternative financial systems, weakening global demand for the dollar. This strategic pivot comes despite his previous stance during his presidency when he expanded these sanctions.
Trump pointed out that by reconsidering these sanctions, the U.S. could curb the growing economic alliances between Iran, Russia, and China and enhance the American economy through renewed international trade relations.
Trump also emphasized his intention to implement severe tariffs—100%—on goods from countries that stop using the U.S. dollar in international trade. This approach aims to counteract de-dollarization efforts by major economies like China and India, further emphasizing his commitment to maintaining the dollar’s global dominance.
Donald Trump wants to remove the US sanctions on Russia because he is afraid they will make the dollar weak. This summer Forbes wrote an article called “Why Is The U.S. Dollar So Strong Right Now?” and Goldman Sachs wrote “Why the US dollar is likely to stay ‘stronger for longer” https://t.co/I7awuv5AJb
— The Union (@JoinTheUnionUS) September 25, 2024
The Economic and Political Implications
Under the terms of the Iran nuclear agreement, formally known as the Joint Comprehensive Plan of Action (JCPOA), Iran had agreed to dismantle parts of its nuclear program in exchange for sanctions relief. This landmark accord, reached in July 2015, involved several world powers, including the United States.
Trump’s comments come at a critical juncture in the presidential race, with key battleground states like Wisconsin being highly contested. Recent polls indicate that Kamala Harris, his Democratic rival, currently leads by 8 percentage points in Wisconsin. The evolving relationships between the U.S. and its international trade partners will remain a pivotal issue in the lead-up to the election.
🇺🇸 Donald Trump pledges to remove US sanctions on Russia and Iran, citing impact on the dollar
Donald Trump has stated that he plans to remove U.S. sanctions on Russia and Iran, arguing that these measures are harming the strength of the U.S. dollar. Trump's stance reflects his… pic.twitter.com/2JSmTfjkk6
— X News Journal (@XNewsJournal) September 25, 2024
Broader Geopolitical Trends
Geopolitical dynamics are vastly changing. BRICS nations, which now include Saudi Arabia, the UAE, Iran, Egypt, Argentina, and Ethiopia, control 43% of global oil production. China and India, as major oil importers, are negotiating oil imports in their own currencies, reducing their dependency on the dollar. Such shifts could challenge the dollar’s hegemony, especially with the rise of central bank digital currencies (CBDCs) and alternative financial infrastructures like China’s UnionPay, India’s UPI, and Russia’s SPFS.
Trump’s approach aims to counteract these trends to protect the dollar’s global status, but it may face significant challenges from established international agreements and the complex web of existing sanctions.
