President-elect Donald Trump of the United States has warned of implementing 100% tariffs on goods imported from BRICS nations if they transition away from using the US dollar in international trade.
BRICS, an intergovernmental coalition, includes nine member countries: Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE).
Source: UGC
Although the US dollar remains the dominant currency in global commerce, tariffs function as a tax or charge on imports, with the resulting extra costs often being transferred to consumers.
The remark follows a BRICS summit held last month in Kazan, Russia, where member nations explored ways to increase non-dollar transactions and enhance the use of their local currencies.
During an October BRIC nations summit, Russian President Vladimir Putin criticized the United States for “weaponizing” the dollar, calling it a “serious error.”
The BRICS alliance is advocating for enhanced financial collaboration, including efforts to establish alternative systems to counterbalance the dominance of Western-controlled payment networks.
Responding to this initiative, Donald Trump urged the BRICS group in a Sunday post on X to abandon their plans to phase out the US dollar in international trade.
“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 or, they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful U.S. economy.”
Trump stated that the BRICS have no chance of replacing the U.S. dollar in international trade, warning that any country attempting to do so should be prepared to sever ties with the United States.
The International Monetary Fund (IMF) reports that the dollar accounts for approximately 58% of global foreign exchange reserves, and it remains the dominant currency for trading major commodities such as oil.
Source: Legit.ng
