Dollar diplomacy was a foreign policy approach adopted by the United States during the presidency of William Howard Taft from 1909 to 1913. The policy aimed to promote American commercial interests abroad by using diplomacy to secure new opportunities for American bankers and industrialists. The policy was characterized by the use of financial incentives, such as loans and investments, to promote American interests abroad. The goal of dollar diplomacy was to create stability and maintain order abroad, which would also promote American commercial interests.

However, dollar diplomacy failed to counteract economic instability and the tide of revolution in places like Mexico, the Dominican Republic, Nicaragua, and China. The policy was criticized by Latin Americans who saw it as a way for the U.S. government and corporations to use economic, diplomatic, and military power to open up foreign markets. When Woodrow Wilson became president in March 1913, he immediately canceled all support for dollar diplomacy.

In summary, dollar diplomacy was a foreign policy approach that aimed to promote American commercial interests abroad by using financial incentives to secure new opportunities for American bankers and industrialists. However, the policy failed to counteract economic instability and the tide of revolution in some countries and was criticized by Latin Americans.