According to an economist, Trump's promise of imposing 100% tariffs on countries that disregard the dollar will result in a disadvantage for both China and the United States.

• According to Hao Hong of GROW Investment Group, the former president's threat to impose 100% tariffs on countries that abandon the U.S. dollar would result in a "lose-lose" situation for both the U.S. and China.
• If Trump wins a second term, he had proposed imposing tariffs of 60% or more on all Chinese goods earlier this year.

According to Hao Hong, a partner and chief economist at GROW Investment Group, the threat by Republican presidential nominee Donald Trump to impose 100% tariffs on countries that do not use the U.S. dollar is a "lose-lose" situation for both America and China.

At a rally in Wisconsin on Saturday, the former president pledged to maintain the U.S. dollar as the global currency standard if he wins the election in November.

"Numerous countries are abandoning the dollar. They will not abandon the dollar with me. I will assert, if you abandon the dollar, you will not conduct business with the United States because we will impose a 100% tariff on your goods," he stated.

The campaign promise aims to safeguard the dominance of the US dollar in international financial markets and will respond sternly to any attempts to disrupt it, as stated by Hong on Monday's "Street Signs Asia" on CNBC.

Hong stated that the U.S. dollar's status as a privilege enjoyed by the U.S. economy has made it a liquidity tax on other countries, which is why he is not surprised by the threat.

Despite a decrease in its share in central banks' foreign exchange reserves from over 70% in 1999, the U.S. dollar remains the dominant currency in global forex reserves. Oil, a vital commodity for all countries, is priced in the U.S. dollar.

In recent years, countries from Brazil to Southeast Asia have been advocating for trade to be carried out in currencies other than the US dollar.

The former president's decision to impose tariffs on Beijing is likely to result in a "lose-lose" situation for both Washington and its biggest economic rival, according to Hong.

Lowering global inflation has been driven by the competitiveness of the Chinese export sector, according to Hong.

Putting a 100% tariff on Chinese exports would lead to a significant increase in U.S. inflation, and much of the trade deficit would shift to allies like Mexico and Canada, he stated.

The imposition of high tariffs on China would harm its exports, which are already experiencing a decline, and exacerbate the overcapacity issue in its manufacturing sector, as stated by Hong.

Trump had proposed increasing tariff rates on all China imports by 60% or more during his first term, and also stated that he would impose a 10% tariff on all U.S. imports.

Stephen Roach, an economist, stated on CNBC's "Squawk Box Asia" in July that the China tariffs would definitely increase inflation in the U.S.

Andrew Tilton of Goldman Sachs stated on CNBC's Squawk Box Asia that Trump's proposed tariffs on China could decrease Beijing's GDP by 2%.

- CNBC's Sonia Heng and Penny Chen contributed to this report