Trump warns of a 100% tariff on BRICS nations due to their currency plans
Since its formation in 2009, the BRICS group has grown considerably.
President-elect Donald Trump issued a warning on Monday, threatening to impose a 100% tariff on BRICS nations if they undermine the US dollar.
“We demand a commitment that they will not create a new BRICS currency or support any other currency to replace the powerful US Dollar. If they do, they will face 100% tariffs,” Trump wrote on his Truth Social platform, referring to the group comprising Brazil, Russia, India, China, South Africa, and others.
This statement follows last month’s BRICS summit in Kazan, Russia, where the nations discussed increasing non-dollar transactions and strengthening their local currencies.
Since its creation in 2009, the BRICS group has grown substantially, now including countries like Iran, Egypt, and the United Arab Emirates. Collectively, the BRICS nations contribute a significant share of the global economic output.
During the Kazan summit in October, Moscow pushed for a joint declaration that would support “strengthening correspondent banking networks within BRICS” and facilitate local currency settlements through the BRICS Cross-Border Payments Initiative.
However, at the summit’s conclusion, President Putin stated that little progress had been made on creating a potential competitor to the Belgium-based SWIFT financial messaging system. “As for SWIFT and any alternatives, we have not created, nor are we creating, any alternatives,” Putin told reporters. He also clarified, “We are not considering the idea of a unified BRICS currency at the moment.”
Trump, who has advocated for a protectionist stance, has previously threatened significant tariffs on both neighbors and competitors.
He reiterated his warning, saying that if BRICS nations continue with their plans, they “should expect to say goodbye to selling into the wonderful US Economy.” He added, “They can go find another 'sucker!' There is no chance that the BRICS will replace the US Dollar in international trade, and any country that attempts to do so should wave goodbye to America.”
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