Former US President and Republican presidential nominee Donald Trump has made a significant policy promise regarding the future of US economic sanctions. Speaking at the Economic Club of New York on September 5, Trump expressed his intent to drastically reduce the use of sanctions if he wins the 2024 election, arguing that excessive reliance on these economic penalties is harming the US dollar and could undermine its global dominance.

This declaration comes as Trump positions himself for a potential return to the White House, with economic strategy taking center stage in his campaign platform. During the appearance, when asked about his stance on US sanctions against countries like Russia, Iran, and North Korea, Trump responded, “I want to use sanctions as little as possible,” while acknowledging his past reliance on these measures during his presidency from 2017 to 2021.

The use of sanctions has long been a favored tool of US foreign policy, allowing Washington to exert pressure on countries without direct military engagement. From Iran’s nuclear ambitions to Russia’s annexation of Crimea, sanctions have been employed to signal US disapproval and to coerce nations into changing their policies. However, Trump’s recent comments underscore a growing concern: the potential long-term consequences for the US economy, especially the status of the dollar as the world’s primary reserve currency.

Trump pointed out that the overuse of sanctions may ultimately “kill your dollar and kill everything the dollar represents.” As the world’s reserve currency, the US dollar plays a crucial role in international trade, finance, and economic stability. If the dollar were to lose its dominant position, Trump warned, “that would be the equivalent of losing a war, that would make us a third-world country.”

While the US dollar remains the most widely used currency in global transactions, a number of countries-particularly those subjected to sanctions-have begun exploring alternatives, including the Chinese yuan and cryptocurrencies. Trump’s warning reflects concerns that the US could face increased competition for financial dominance from rising powers like China, which is actively promoting the use of its currency in international trade.

Despite his current stance, Trump has a history of imposing sanctions during his presidency. Between 2017 and 2021, the Trump administration significantly ramped up the use of economic sanctions, targeting countries like Iran, Russia, and North Korea in an effort to address national security concerns. Iran, in particular, faced stringent sanctions after Trump withdrew the US from the Joint Comprehensive Plan of Action (JCPOA), the nuclear deal brokered by the Obama administration in 2015.

In the case of Russia, Trump imposed several rounds of sanctions in response to its annexation of Crimea, its alleged interference in the 2016 US election, and its actions in Syria. However, these moves did not stop Moscow from continuing its aggressive foreign policy, culminating in Russia’s full-scale invasion of Ukraine in 2022. This has led to record levels of sanctions imposed on Russia by the US and its allies, with over 22,000 restrictions now in place.

Russian President Vladimir Putin, during a public appearance earlier this week, commented on Trump’s record of sanctions, stating that “no other US president has ever imposed so many restrictions and sanctions against Russia” as Trump. While some have perceived Trump as more lenient towards Russia than other US leaders, these remarks from Putin highlight the paradox of Trump’s legacy-his administration may have pursued a less confrontational diplomatic stance with Moscow, but it did not shy away from using economic measures to pressure the Kremlin.

In contrast, Putin took a more humorous approach when discussing Kamala Harris, the Democratic presidential nominee. He remarked that Harris “has a very contagious laugh, which shows that everything is fine for her.” Putin’s comments suggest that he anticipates a different dynamic with a Harris administration but hinted that she might continue using similar methods of pressure should she win the election.

The strain of maintaining the US sanctions regime is becoming increasingly evident. A Washington Post report in July 2024 revealed that a third of the world’s nations, including 60 percent of low-income countries, are currently under some form of US sanctions. This widespread application has stretched the Office of Foreign Assets Control (OFAC), the US Treasury Department agency responsible for enforcing sanctions, to its limits.

The complexity and sheer number of sanctions have reportedly led to chaos at OFAC, with the office struggling to manage the intricate web of restrictions. Critics argue that this overwhelming burden not only reduces the effectiveness of sanctions but also increases the risk of unintended consequences, such as destabilizing fragile economies or pushing countries further into the orbit of US adversaries like China and Russia.

Trump’s comments signal a potential shift in US foreign policy under a future Trump administration, one that prioritizes preserving the global role of the US dollar over using sanctions as a punitive tool. His remarks resonate with broader concerns about the long-term viability of the dollar’s status and reflect a growing awareness of the limitations of sanctions as a foreign policy instrument.

However, scaling back sanctions may be easier said than done. The US has built an extensive network of economic restrictions, many of which are tied to specific legislative mandates or multilateral agreements. Unwinding these sanctions would require not only executive action but also cooperation from Congress and international partners. Moreover, critics of Trump’s approach argue that reducing sanctions could weaken the US’s ability to respond to global challenges, such as human rights violations or nuclear proliferation.

As the 2024 election approaches, Trump’s stance on sanctions will likely be a key aspect of his broader economic message, appealing to voters who are concerned about US economic dominance and the health of the dollar. Whether this policy shift would prove beneficial or detrimental to US interests remains a subject of debate, but it is clear that Trump’s vision for America’s future includes a reevaluation of one of its most frequently used foreign policy tools.

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