US President-elect Donald Trump has escalated tensions with the BRICS bloc by threatening to impose 100% tariffs on imports from member countries if they proceed with creating a new currency to rival the US dollar.
In a statement posted on his
Truth Social platform on Saturday, November 30, Trump declared, “The idea that
the BRICS Countries are trying to move away from the Dollar while we stand by
and watch is OVER.”
The BRICS group, which
initially included Brazil, Russia, India, China, and South Africa, has recently
expanded to incorporate Iran, Saudi Arabia, the United Arab Emirates,
Argentina, Egypt, and Ethiopia. The bloc has been vocal about reducing reliance
on the US dollar, with some members, including Russia and China, advocating for
a BRICS-backed currency as an alternative global reserve currency.
Trump emphasized the US’s firm
stance on the matter, stating, “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 or, they will face 100% Tariffs, and should
expect to say goodbye to selling into the wonderful U.S. Economy.”
This rhetoric comes amidst
broader moves by Trump to implement sweeping tariffs on several trading
partners. In recent weeks, he has also threatened 25% tariffs on imports from
Canada and Mexico and an additional 10% on goods from China, citing issues such
as illegal migration and drug trafficking. These actions have already prompted
a diplomatic response, with Canadian Prime Minister Justin Trudeau visiting
Trump’s Mar-a-Lago residence to address the matter.
The BRICS nations have long
expressed dissatisfaction with the dominance of the US dollar in global trade,
with Russian President Vladimir Putin accusing Western powers of
"weaponizing" the currency. Speaking at a BRICS summit in October,
Putin argued that US sanctions against Russia have eroded trust in the dollar.
The possibility of a BRICS
currency was formally discussed during last year’s summit in South Africa, with
member nations advocating for a financial system less dependent on Western
control.
Trump’s tariff threats
highlight his aggressive trade policy, which was a cornerstone of his campaign
during the recent US election. His decisive victory has emboldened his
commitment to reshaping the global trade landscape and protecting what he calls
the “mighty US dollar.”
As Trump prepares to take
office, the global economic community is watching closely to see whether his
threats will materialise and how BRICS nations and other trading partners will
respond.
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