Trump threatens BRICS with steep tariffs over currency plans
The President-elect of the USA, Donald Trump, issued a warning to the BRICS countries on Saturday, threatening to impose 100% tariffs on their products. This action would be taken if BRICS attempts to challenge the dollar's position as the leading currency in global economic relations.
"We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar," the incoming US president stated on his social media platform, Truth Social.
He stressed that if BRICS members do not comply with this warning, "they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy."
BRICS and a common currency?
In August, Brazilian President Luiz Inácio Lula da Silva proposed, during the BRICS summit in Johannesburg, the creation of a currency within this organisation, which would allow them greater independence from the dollar. However, the proposal was not embraced by the other BRICS countries.
According to the Polish Institute of International Affairs (PISM), the alarming claims about the dollar's decline circulating in public debate are baseless and may be part of Russian or Chinese disinformation.
BRICS is a politico-economic agreement among Brazil, China, India, Russia, and South Africa. Egypt, Ethiopia, Iran, and the United Arab Emirates became members this year. BRICS partner countries include Belarus, Bolivia, Indonesia, Malaysia, Nigeria, Thailand, and Vietnam. Turkey is among the countries seeking such status.
Trump's earlier warnings
A few days prior, Trump had mentioned raising tariffs concerning three countries: China, Canada, and Mexico. He declared that this would be his first economic action upon returning to the White House. The president-elect added that the tariffs would remain until these countries cease the influx of drugs, particularly fentanyl, and the invasion of "illegal aliens" into the United States.
American law grants the president the authority to impose tariffs via decrees, a power Donald Trump utilised several times during his first term when he imposed tariffs on Chinese and European steel and aluminium.
Following this announcement, Trump met with Canadian Prime Minister Justin Trudeau. The two leaders had dinner together at the president-elect's residence at Mar-a-Lago in Florida, where they discussed trade and the border between their countries.
Trudeau is the first leader of a G7 country to meet directly with Trump after the elections.
