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President-elect Donald Trump has issued a stark warning to the bloc of BRICS nations, threatening to impose 100% tariffs if they plan to create a currency to rival the US dollar. The statement on Trump’s social media platform Truth Social represents a sharp escalation in his protectionist economic rhetoric.
The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, recently expanded to include Iran, Egypt, Ethiopia, and the United Arab Emirates. Discussions among its leaders about developing an alternative to the US dollar have gained attention, though internal disagreements have stalled progress.
Trump’s message underscored his opposition:
“The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER. They can go find another sucker.”
He further threatened that countries pursuing such a currency would face total tariffs on all goods exported to the US:
“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 US dollar, or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy.”
Many observers see Trump’s threats as a negotiating strategy rather than a definitive policy plan. Republican Senator Ted Cruz commented on the matter during an interview with CBS News, highlighting the “importance of leverage” in trade negotiations:
“You look at the threat of tariffs against Mexico and Canada, immediately has produced action.”
Trump’s previous trade negotiations often employed a similar tactic of “escalate to de-escalate”, according to Scott Bessent, Trump’s nominee for Treasury Secretary.
Economists caution that tariffs, while politically appealing, often result in unintended domestic consequences:
- Higher Costs for US Consumers: Tariffs increase the price of imported goods. For example, a car valued at $50,000 would incur a $12,500 charge under a 25% tariff.
- Tax Burden on US Firms: Contrary to Trump’s claims that tariffs cost foreign exporters, they are physically paid by US companies importing the goods.
- Broader Trade Disruptions: A 100% tariff on BRICS nations could disrupt global supply chains, increase costs for US businesses, and provoke retaliatory measures.
During his first term, Trump imposed numerous tariffs on countries like China and allies including Canada and the European Union. While intended to boost domestic manufacturing and protect jobs, studies showed these policies largely increased costs for American consumers and businesses.
Trump’s tariff threats come amid growing international conversations about reducing dependence on the US dollar. Leading figures in Brazil and Russia have floated the idea of a BRICS currency, citing frustration with dollar dominance in global trade.
Although still a concept, such moves reflect shifting dynamics in global economic power and could challenge US influence.
The effectiveness of Trump’s tariff threats will depend on whether BRICS nations perceive them as serious policy or opening gambits in a negotiation. Meanwhile, the global economic implications—particularly for US consumers—remain a critical concern.
As Trump prepares to take office in January, the future of US trade policy is poised for a dramatic and contentious overhaul.