President-elect Donald Trump issued a stark warning to the BRICS bloc of nations, threatening 100% tariffs on their exports to the U.S. if they attempt to replace the U.S. dollar as the primary global reserve currency. This announcement comes amidst growing discussions within BRICS countries about creating an alternative currency to reduce dependence on the dollar.
Trump’s Demands on BRICS
In a post on Truth Social, Trump demanded a formal commitment from the BRICS countries—Brazil, Russia, India, China, South Africa, and newer members like Iran, Egypt, Ethiopia, and the UAE—to continue using the dollar in international trade.
“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump declared. He warned that any deviation from the dollar would result in steep tariffs and exclusion from the U.S. economy.
Trump’s post further dismissed the viability of a new BRICS currency, asserting:
“There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America.”
Rising Interest in De-Dollarization
Efforts to reduce reliance on the U.S. dollar among BRICS nations gained traction at the 2024 BRICS Summit, fueled by dissatisfaction with U.S. sanctions policies, especially the measures imposed on Russia following its invasion of Ukraine. A new BRICS currency could potentially rival the dollar in international trade, especially among countries seeking alternatives to Western financial systems.
While discussions remain preliminary, the bloc’s combined economic influence—representing over 40% of the global population—makes these efforts significant.
Expanding Tariff Threats
Trump’s threat against BRICS nations is part of his broader trade agenda. He recently announced plans for:
- 25% tariffs on imports from Mexico and Canada, citing illegal migration and drug trafficking.
- An additional 10% tariff on Chinese imports to address trade imbalances and other concerns.
The cumulative tariffs on China and other BRICS nations remain unclear, with Trump’s transition team declining to provide specific figures.
The Global Fallout
Trump’s stance underscores a willingness to use tariffs as a tool for enforcing U.S. economic dominance, particularly concerning the dollar’s role in global finance. However, these threats could provoke retaliation from BRICS nations and accelerate their efforts to develop an alternative financial system, potentially destabilizing global trade.
The move also raises questions about how Trump’s policies might strain relationships with key trading partners and reshape the geopolitical landscape.
COMMENTS