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Trump threatens 100% tariff on the BRIC bloc of nations if they act to undermine US dollar
WEST PALM BEACH, Fla. (AP) — President-elect Donald Trump on Saturday threatened 100% tariffs against a bloc of nine nations if they act to undermine the U.S. dollar.
His threat was directed at countries in the so-called BRIC alliance, which consists of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates.
Turkey, Azerbaijan and Malaysia have applied to become members and several other countries have expressed interest in joining.
While the U.S. dollar is by far the most-used currency in global business and has survived past challenges to its preeminence, members of the alliance and other developing nations say they are fed up with America’s dominance of the global financial system.
- The dollar’s dominance is threatened, however, with BRICS’ growing share of GDP and the alliance’s intent to trade in non-dollar currencies — a process known as de-dollarization. . .
On Thursday, Trump wrote on Truth Social: "The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER.
"We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.
"They can go find another sucker Nation. There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!"
South Africa's Department of International Relations and Cooperation told Newsweek: "South Africa has the largest economy in Africa, while Brazil, India and China are among the world's top 10 countries by population, area and GDP.
"BRICS owns the New Development Bank, which has invested US$30 billion (note the investment is in dollars) in infrastructure development projects in member states and other developing economies.
"All five initial BRICS nations are members of the G20, alongside the United States. BRICS leaders have called for a reformed international financial system to facilitate trade in local currencies.
Trump repeats tariffs threat to dissuade BRICS nations from replacing US dollar | Reuters
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