Trump Issues 100% Tariff Threat Against BRICS Nations

In a bold move, President-elect Donald Trump has threatened to impose 100% tariffs on a coalition of nine nations if they take steps to undermine the U.S. dollar. This warning specifically targets countries within the BRICS alliance, which includes Brazil, Russia, India, China, and South Africa, as well as Egypt, Ethiopia, Iran, and the United Arab Emirates.

Additionally, nations such as Turkey, Azerbaijan, and Malaysia are seeking to join this growing coalition. Many members of the BRICS alliance and other developing countries have expressed discontent with the dominance of the U.S. in the global financial landscape.

The U.S. dollar is currently the most widely used currency in international trade, comprising about 58% of the world's foreign exchange reserves, as reported by the International Monetary Fund. Although the dollar has faced challenges over the years, it remains the primary currency for significant commodities like oil. Yet, with BRICS nations increasing their share of the global GDP, there are concerns about the dollar's dominance, particularly as these nations explore trading in currencies other than the dollar, a movement referred to as de-dollarization.

In a recent post on Truth Social, Trump made it clear that he requires assurance from BRICS countries that they will not attempt to create a new BRICS currency or support another currency to replace the U.S. dollar. Without such commitments, he warned that these countries would face substantial tariffs and would “say goodbye” to opportunities in the U.S. market.

During an earlier BRICS summit, Russian President Vladimir Putin accused the United States of "weaponizing" the dollar and noted that Russia was compelled to seek alternative methods since the U.S. was limiting their economic interactions. "It’s not us who refuse to use the dollar," Putin remarked. "If they don’t let us work, what can we do? We are forced to search for alternatives."

Russia has been advocating for the development of a new payment system to bypass the global banking network, SWIFT, in order to facilitate trade with its partners while evading Western sanctions.

Trump expressed confidence that BRICS will not succeed in replacing the U.S. dollar in global trade. He warned that any country trying to do so would face severe consequences.

Current research indicates that the status of the U.S. dollar as the primary global reserve currency is not under immediate threat. An Atlantic Council study revealed that the dollar’s position is stable in both the short and medium term, continuing to overshadow other currencies.

This latest tariff threat from Trump follows previous threats of 25% tariffs on imports from Mexico and Canada, and additional taxes on Chinese goods, aimed at compelling these nations to take stronger actions against issues such as illegal immigration and drug trafficking.

In recent discussions, Mexican President Claudia Sheinbaum expressed optimism about avoiding a tariff confrontation with the U.S., while Canadian Prime Minister Justin Trudeau concluded his meeting with Trump without guarantees that the threatened tariffs on Canadian goods would be rescinded.

Hussein writes for the Associated Press.

Tariffs, Economy, U.S., Dollar, BRICS