President-elect Donald Trump has warned the BRICS nations that they face a 100% tariff on their exports to the United States if they proceed with plans to replace the US dollar in international trade.
Speaking via his Truth Social platform, Trump stated, “We require a commitment… that they will neither create a new BRICS currency nor back any other currency to replace the mighty US Dollar, or they will face 100 percent tariffs.”
BRICS Summit Discussions
At the recent BRICS summit held in Kazan, Russia, member states, including Brazil, Russia, India, China, and South Africa, explored ways to reduce reliance on the dollar by encouraging local currency transactions and enhancing correspondent banking networks.
Despite these discussions, Russian President Vladimir Putin clarified that there are no current plans for a unified BRICS currency or an alternative to the SWIFT financial messaging system.
Expansion of BRICS
The BRICS group has grown significantly since its inception, now including Iran, Egypt, and the UAE. Collectively, the coalition represents a substantial portion of global economic output, prompting concerns in the US about potential challenges to the dollar’s dominance.
Trump’s Protectionist Stance
Trump, known for his protectionist economic policies, reiterated his opposition to any attempts to undermine the dollar. He warned, “There is no chance that the BRICS will replace the US Dollar in international trade, and any country that tries should wave goodbye to America.”
This development underscores escalating tensions between the US and the expanding BRICS bloc as global economic power dynamics continue to shift.
