President-elect Donald Trump declares 100% tariffs on BRICS goods if they threaten the US dollar
President-elect Donald Trump has shocked the public by declaring that he will impose a 100% tariff on goods from 9 countries in the BRICS alliance if these countries continue to take actions to undermine the role of the US dollar in the global financial system, according to AP.
The BRICS alliance currently includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates. This bloc is making efforts to reduce its dependence on the US dollar by increasing transactions in domestic currencies and developing a common currency. In addition, countries such as Turkey, Azerbaijan, and Malaysia have also applied to join BRICS, increasing the size and influence of this bloc.
Currently, the US dollar accounts for 58% of global foreign exchange reserves and is the main currency for international transactions, especially in the oil sector. However, with the rapid economic growth of BRICS countries and their "de-dollarization" efforts, the dominant role of the US dollar is being challenged.
Faced with this threat, Trump asserted that BRICS does not have the ability to replace the US dollar in global trade. In a post on the social media platform Truth Social, he emphasized:
"We need a commitment from these countries that they will not create a new BRICS currency or support any other foreign currency to replace the US dollar. If not, these countries will be subject to a 100% tariff and will have to say goodbye to the wonderful US economy."
Previously, at the BRICS summit in October, Russian President Vladimir Putin criticized the US for "weaponizing" the US dollar, calling this a "major mistake." Russia is currently actively building a new payment system to avoid Western sanctions and reduce its dependence on the SWIFT network.
Iran, a new member of BRICS, has also confirmed that it is closely cooperating with Russia to develop a common currency, which may utilize Blockchain technology. According to the Iranian ambassador, more than 60% of bilateral trade transactions between Russia and Iran are currently conducted in Rubles and Rials.
Also Read: BRICS plans to "de-dollarize" with a new cryptocurrency on Blockchain
