BRICS Nations Face 100% Tariff Threat from Trump Over Currency Moves
Donald Trump recently issued a stern warning to BRICS member countries, threatening to impose a 100% tariff if they attempt to undermine the dominance of the U.S. dollar. This warning came through a post on his Truth Social platform, where he emphasized the necessity for BRICS nations—including Brazil, Russia, India, China, and South Africa—to commit to refraining from creating a new BRICS currency or endorsing any currency that could rival the U.S. dollar.
Trump’s statement follows discussions among BRICS nations about reducing their reliance on the U.S. dollar for trade. At the recent BRICS summit, member states explored the feasibility of promoting transactions in local currencies and enhancing correspondent banking networks among BRICS members. However, Trump made it clear that any move away from the dollar would result in significant tariffs and a loss of access to the U.S. market.
The BRICS coalition, which now includes additional nations like Iran, Egypt, Ethiopia, and the United Arab Emirates, represents a considerable portion of the global economy. Despite the discussions, experts remain skeptical about the feasibility of creating a unified BRICS currency due to the diverse economic and financial systems of the member countries.
This development underscores the ongoing geopolitical tensions and the challenges faced by the U.S. in maintaining the dollar’s dominance in global trade.
