Threats of economic asphyxiation against Iran and sanctions on China could nudge nations away from a world dominated by the US dollar.
This combination of pictures created on August 25, 2026 shows (L/R) US President Donald Trump in Myrtle Beach, South Carolina on August 21, 2026 and Canadian Prime Minister Mark Carney in Levis, Quebec, Canada on August 24, 2026. Canada on August 25, 2026, announced counter-tariffs on US goods ranging between 15 percent and 50 percent, intensifying the trade war between the historically close allies. Ottawa’s retaliation takes effect September 8, a timeframe earlier outlined by Prime Minister Mark Carney after US President Donald Trump’s 50-percent duties on Canadian products came into place on August 22. (Photo by SAUL LOEB and ANDREJ IVANOV / AFP)
If anyone could “Make America Grate Again”, that would be Donald J Trump… and the man who has a knack for turning allies into enemies was at it again this week, trying to use US economic muscle and the threat of various forms of financial punishment for those who irritate him.
Firstly, trade negotiations with neighbour Canada imploded, leading to Washington slapping a range of imports with an additional 50% tariff.
Canadian Prime Minister Mark Carney said one of the main reasons he walked away from a deal with the Trump administration is because Washington demanded terms that would “destroy” big Canadian industries including the auto, steel and aluminium sectors.
In addition, the Americans wanted to have an effective veto over Canada’s right to make free trade deals with other countries. But what rankled was US insistence that Canada do away with its requirement for bilingual French and English labelling on certain products.
Next in the sights of “The Don” appears to be China, which has been threatened with sanctions if it continues to deal with Iran. The threats are part of Trump’s plan for “economic asphyxiation” of Beijing’s economic partner, Iran.
Why this would be necessary if Iran has already been destroyed – as Trump has claimed on multiple occasions – is beyond us.
What all of this bullying is going to achieve, in the end, is to accelerate the decline of the American Empire.
Canada and many other countries are talking realistically about new trade deals in the “post America” era and Trump trying to push China into a corner could just nudge the plans of many nations to move away from a world which is dominated by the dollar.
Ironically, many of Trump’s supporters believe he is leading the fight against an evil “new world order”, when, in reality, he may actually be spurring it on.
