President-elect Donald Trump has warned of imposing a 100 percent tariff on goods from BRICS nations if they proceed with plans to weaken the US dollar’s dominance in global trade.
In a post on 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.”
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The BRICS group-comprising Brazil, Russia, India, China, South Africa, and several new members, including Iran, Egypt, and the UAE-discussed steps to boost non-dollar transactions during their October summit in Kazan, Russia.
The summit produced a joint declaration supporting the strengthening of local currency settlements and correspondent banking networks under the BRICS Cross-Border Payments Initiative. However, Russian President Vladimir Putin clarified that no immediate plans exist for a unified BRICS currency or an alternative to the SWIFT financial messaging system.
“As for a unified BRICS currency, we are not considering that question at the moment,” Putin said, adding that the group is not working on alternatives to SWIFT.
Despite this, Trump has vowed to defend the US dollar’s role in international trade with protectionist measures. “If BRICS countries continue with their plans, they should expect to say goodbye to selling into the wonderful US Economy,” Trump wrote. “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.”
The BRICS coalition, which has significantly expanded since its inception in 2009, now represents a substantial portion of the global economy, intensifying concerns over its potential to challenge US economic dominance.
