Trump Threatens 100% Tariffs on BRICS Countries Over Currency Creation

TDT | Manama
Email : editor@newsofbahrain.com

President-elect Donald Trump has issued a stark warning to countries within the BRICS bloc, demanding they commit to not creating a new currency or face a hefty 100% tariff on their exports to the United States. The group, which includes Brazil, Russia, India, China, and South Africa, recently expanded to include Iran, Saudi Arabia, the UAE, Ethiopia, and Egypt. BRICS has been seeking greater economic autonomy, with some members considering alternatives to the U.S. Dollar for trade, particularly as countries like Russia and Iran attempt to circumvent Western sanctions.

Trump, in a post on his social media platform Truth Social, stated that the U.S. would no longer tolerate attempts to undermine the dominance of the dollar. "The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER. 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. "Otherwise, they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful U.S. economy."

This statement comes in the wake of increased global scrutiny on the BRICS nations, as they seek closer economic ties, particularly with China and Russia, which have been at odds with Western powers in recent years. Russia, under sanctions for its invasion of Ukraine, is using the BRICS forum to solidify alliances with emerging economies. At the October BRICS summit, Russian President Vladimir Putin and Chinese leader Xi Jinping highlighted the growing divide between the West and what they described as a "global majority" of nations, positioning BRICS as an alternative to U.S.-dominated global systems.

In 2023, Brazil’s President Luiz Inácio Lula da Silva proposed creating a South American common currency to reduce reliance on the U.S. Dollar. However, despite the economic benefits of bypassing U.S. financial institutions and the dollar-based system, the likelihood of a new BRICS currency remains uncertain due to internal geopolitical and economic differences.

The U.S. has long been the dominant player in the global financial system, with the U.S. Dollar as the primary currency for international trade. However, the expansion of the BRICS group and its efforts to forge closer economic ties present a growing challenge to this dominance. Countries like China and Russia have increasingly looked to leverage alternatives to the dollar, both to shield themselves from U.S. sanctions and to assert their global influence.

Trump's remarks on BRICS come shortly after he announced plans to impose massive tariff increases on goods from Mexico, Canada, and China in response to concerns over illegal immigration and drug trafficking. The president-elect’s tough stance on trade is part of his broader "America First" policy, which seeks to recalibrate U.S. foreign relations to prioritize American interests.

As tensions rise, the future of global trade and U.S.-BRICS relations could undergo significant changes, with potential economic ramifications for both sides.