The U.S. dollar dominates the global economy because it was trusted, widely used, and deeply embedded in global trade. It’s like being the default language everyone uses at an international conference — even if it’s not their first language, it helps things run more smoothly. But the speaker of that language — in this case, America — gets a lot of extra power.
The dominance of the dollar gives the U.S. a kind of “soft weapon” it can use without firing a shot. And when paired with policies like tariffs, it becomes a powerful economic tool for coercion or control — rather than cooperation.
Because the dollar is central to global trade, debt, and reserves, the U.S. can:
- Control access to dollars — through sanctions, restrictions, or financial surveillance.
- Force other countries to follow its rules — or risk being cut off from global banking systems (like SWIFT).
- Export its economic problems — for example, printing money during a crisis affects other countries’ economies because they rely on dollar-denominated assets.
This gives the U.S. leverage that no other country currently has. It can use this to encourage cooperation — or to punish disobedience.
Tariffs are the other side of economic aggression, especially under current or recent administrations.
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Tariffs are taxes on imports from other countries.
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They’re often used not just to protect U.S. industries, but as a threat or punishment in trade disputes (e.g., with China, the EU, or even allies like Canada or Mexico).
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Combined with dollar dominance, this creates a one-two punch:
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The U.S. makes global trade hard for competitors.
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Then it uses its currency’s power to pressure foreign banks, companies, and governments.
At present, you can’t escape the dollar. Say a country like Iran, Venezuela, or even Russia tries to sell oil. Even if they don’t want to use dollars, the banks they go through often still rely on the dollar system. So even trades between third parties can be blocked if the U.S. wants to intervene. This is economic warfare through currency control.
As a result, many countries are looking for alternatives to reduce their dependency on the dollar:
- China and Russia trade in their own currencies more and more.
- The BRICS nations are developing alternative financial systems.
- There’s growing interest in digital currencies, gold, and regional trade blocs that bypass the dollar.
But so far, nothing has matched the dollar’s liquidity, trust, and scale — so the U.S. still holds the reins.
The Big Picture
So, the power of the dollar isn’t just economic; it’s geopolitical. And when paired with aggressive trade policies like tariffs, it can:
- Disrupt global supply chains
- Weaken foreign economies
- Push allies and rivals alike into defensive positions
Which might explain why more countries are questioning the “rules of the game” — and looking to build new ones.
