You could look at it that way. Broad strokes yes. The thing is it is probably a bluff.

The problem is the US dollar is the world reserve currency and the Euro Dollar market is massive. So even if a country doesn’t transact directly with the US it still is using dollars for transactions. The US is also the only world super power with a military to back that up.

When Russia started up in Ukraine again the Biden administration booted them from the settlement system and froze their funds in western institutions. Seeing that happen China and Russia are heading up a new BRICS settlement system. That is a direct threat to US interests in remaining the reserve currency.

The US response to this is to go after some of those countries joining BRICS with revolutions and stuff. And at home to pass the Genius Act. An attempt to keep US Treasuries relevant by requiring crypto stable coins to hold them as collateral.

What I think is happening is the US is going after all the other transactions for the people in countries with less stable currencies. Brent Johnson the Dollar Milkshake theory guy has his Orlando Investor conference talk on this theory up for free on youtube if you are interested.

TLDR: Some nations aren’t happy with the US and how it is acting and are threatening to de-dollarize. Except the US Navy is why much of the trade happens.

I don’t think exactly. As I understand: let’s say Italy is holding US debt. This debt has a certain value as long as the US economy is good because then there is a chance of repayment. So as long as Italy holds US debt, it’s interested in having trade with the US or generally being invested in the US economy to keep up the value of their debt.

If they let go of the debt they would have less interest in keeping the US economy up. They would pr stop encouraging their Italian companies to buy American machines/goods/services.

Something like that.