De-dollarization accelerates across Asia as Trump’s 10% tariffs trigger massive dollar sell-offs and push nations toward local currency…

De-dollarization accelerates across Asia as Trump’s 10% tariffs trigger massive dollar sell-offs and push nations toward local currency alternatives. The April 2025 tariff implementation created unprecedented market chaos, forcing countries to seek BRICS currency solutions and threatening the United States dollar’s global dominance.

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How Trump’s 10% Tariffs Drive De-dollarization And Boost BRICS & US Dollar Future Risks

Trump’s universal tariffs sparked immediate de-dollarization momentum across global markets. The head of FX at Deutsche Bank told investors about witnessing a simultaneous collapse in all US assets.

The head of FX at Deutsche Bank stated:

“We are witnessing a simultaneous collapse in the price of all US assets including equities, the dollar … and the bond market.”

Asian De-dollarization Gains Speed Through Local Currency

The tariff crisis accelerated existing de-dollarization trends throughout Asia. At the ASEAN finance ministers meeting in March, policymakers discussed cutting their reliance on the United States dollar and moving to local currency settlements instead. These local currency arrangements represent a fundamental shift away from dollar dependency right now.

Japan’s finance minister Katsunobu Kato had this to say:

“[Tokyo] could sell US Treasury securities, and thereby risk exacerbating the instability in the US bond market, as a ‘card’ in its trade negotiations with Trump”

BRICS Currency Development Accelerates De-dollarization

BRICS nations are advancing their de-dollarization agenda through concrete payment systems. In October 2024, during the BRICS summit in Kazan, members discussed developing BRICS Pay, a decentralized payment system for local currency transactions. This BRICS currency infrastructure could bypass traditional United States dollar systems entirely.

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Trump’s threats against de-dollarization efforts have intensified the crisis.

Trump stated:

“BRICS states were trying to destroy our dollar. They wanted to create a new currency. So when I came in, the first thing I said was any BRICS state that even mentions the destruction of the dollar will be charged a 150% tariff”

US Dollar Future Under Unprecedented Threat

The US dollar future faces its most serious challenge since World War II. Lawrence H. Summers, former treasury secretary, compared Trump’s actions to the 1956 Suez Canal crisis when Britain lost the pound’s reserve currency status.

Lawrence H. Summers said:

“I suspect the administration stepped back because it saw a Suez moment approaching with general lack of confidence in U.S. financial assets spreading to the dollar”

The de-dollarization process is accelerating despite official denials. China is quietly diversifying from US Treasuries, while Japan holds $1.13 trillion in US Treasury securities. This massive exposure makes any Japanese sell-off particularly dangerous for the United States dollar.

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Such a trend goes beyond what is happening among the BRICS countries. More and more local currency trading agreements are appearing across Asia as countries look for options to cut their reliance on the US dollar. Dollar dominance may be under threat if the pressures caused by tariffs cannot soon be checked.

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