US President-elect Donald Trump has issued a stark warning to the BRIC nations—Brazil, Russia, India, and China—threatening to impose a 100% tariff on these countries if they attempt to undermine the dominance of the US dollar in international trade.
The announcement, made via Trump's Truth Social account, comes amid ongoing discussions among BRIC members about reducing their reliance on the US dollar. These talks were notably highlighted during a summit held in Kazan, Russia, in October, where the bloc explored increasing local currency transactions. Russian President Vladimir Putin emphasized the need for alternatives to the US dollar, stating, "The US currency is being used as a weapon."
Trump's response was unequivocal. "The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER," he declared, underscoring the potential economic repercussions for nations pursuing such strategies. The president-elect's aggressive stance has raised concerns of a renewed global trade conflict, particularly affecting sectors like pharmaceuticals, textiles, and IT in countries like India.
Experts warn that these tariffs, if implemented, could severely disrupt trade relations and lead to wider economic instability. Marina Moreno, a scholar at Observa China, noted the challenges BRIC nations face in harmonizing monetary policy, given their diverse economic systems. "Even if [BRIC members] do not succeed in dethroning the dollar, it is certainly possible that they will be able to bypass it through payment systems that favor the clearing of transactions in local currencies," she explained.
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