U.S. President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, U.S., November 19, 2024 . Brandon Bell/Pool via REUTERS/File Photo
Trump Threatens Tariffs Over BRICS Currency Plans
U.S. President-elect Donald Trump on Saturday issued a stark warning to BRICS nations—Brazil, Russia, India, China, and South Africa—demanding that they abandon any plans to establish a new currency or support alternatives to the U.S. dollar. Failure to comply, he warned, would result in 100% tariffs on their exports to the United States.
Trump’s Demand
In a statement posted on his social media platform, Truth Social, Trump emphasized the importance of the U.S. dollar in international trade and dismissed the possibility of it being replaced.
“We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar,” Trump wrote.
He added that countries pursuing such initiatives would face severe economic repercussions:
“They can go find another ‘sucker’. 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.”
BRICS and Dollar Alternatives
BRICS nations have recently explored establishing a joint currency for trade and investment to reduce reliance on the U.S. dollar, driven by concerns over U.S. economic policies and geopolitical tensions. While discussions are ongoing, no official agreement has been reached, and analysts suggest a potential currency would face significant challenges in supplanting the dollar’s dominance.
Potential Impact of Trump’s Tariff Threat
Trump’s proposal to impose 100% tariffs on BRICS countries’ exports could escalate tensions and disrupt global trade. The BRICS bloc represents a significant portion of global economic activity, and retaliatory measures could have far-reaching consequences for international markets.
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