President-elect Donald Trump has issued a warning regarding the potential imposition of a 100 percent tariff on nations within the BRICS group should they engage in practices that undermine the value of the US dollar.
In a recent post on his Truth Social platform, Trump emphasized the necessity for a firm commitment from the BRICS nations—Brazil, Russia, India, China, South Africa, and others—to refrain from establishing a new currency or supporting any alternative to the dominant US Dollar. He warned that failure to comply would result in imposing 100 percent tariffs.
Following last month’s BRICS summit in Kazan, Russia, a statement has emerged regarding the discussions aimed at enhancing non-dollar transactions and fortifying local currencies among the member nations.
Since its establishment in 2009, the BRICS group has expanded considerably, incorporating nations like Iran, Egypt, and the United Arab Emirates. The BRICS coalition represents a notable minority of global economic output.
During the Kazan summit held in October, Moscow achieved a significant milestone by securing a joint declaration to promote the enhancement of correspondent banking networks within BRICS. This initiative also focuses on facilitating settlements in local currencies, aligning with the objectives of the BRICS Cross-Border Payments Initiative.
At the summit’s conclusion, Putin suggested that minimal advancements had been made in efforts to establish a potential rival to the Belgium-based SWIFT financial messaging system.
“Regarding SWIFT and potential alternatives, we have neither developed nor are we in the process of developing any alternatives,” Putin stated to reporters following the summit’s conclusion.
He stated, “Regarding the prospect of a unified BRICS currency, we are not currently addressing that issue.”
Trump has committed to advancing a protectionist agenda, signaling the potential for significant tariffs on both neighboring countries and competitors.
In a stark warning, Trump cautioned that if BRICS nations proceed with their initiatives, they “should expect to say goodbye to selling into the wonderful US Economy,” as he articulated in his statement.
“They can seek out another ‘sucker!'” The prospect of BRICS replacing the US Dollar in international trade appears highly unlikely, and any nation attempting to do so may find itself severing ties with America.
