Donald Trump has threatened BRICS countries with 100% tariffs on exports to the US if they undermine US dollar dominance.
The bloc which comprises nine countries (Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates) aims to reduce Western dominance in a world it views as multipolar.
The newly US President elect is worried that some of the BRICS countries consider to bypass the US dollar in international trade.
“We demand that these countries commit to not creating a new BRICS currency, nor supporting any other currency to replace the mighty American dollar,” Trump declared on his Truth Social media platform. “Otherwise, they will be subjected to 100% tariffs and can say goodbye to their sales in the wonderful American economy.”
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The BRICS group has been exploring ways to do without the dollar, the reference currency for global trade. They have even considered creating their own common currency.
However, this which would require relinquishing some sovereignty within a highly diverse group, and is still a long way to go before being realised.
At the BRICS summit in Kazan, Russia, at the end of October, Russian President Vladimir Putin ruled out the creation of a single common currency, deeming the idea “not yet mature.”
Following his election victory over Kamala Harris in early November, Donald Trump is set to take office at the White House on 20 January.
The President-elect has issued multiple tariff hike threats to various countries, raising fears of a large-scale trade war that could hinder global growth.
The Republican billionaire often uses tariffs as a tool of diplomatic pressure.
On Monday, Trump announced plans to impose 25% tariffs on all products imported from Mexico and Canada, despite the existing free trade agreement with these countries.
Trump said he has vowed to maintain this surcharge “until the drugs, in particular fentanyl, and all illegal (undocumented) migrants stop invade our country.”
