Trump threatens 100% tariffs amid BRICS currency concerns
President-elect of the United States, Donald Trump, threatened the BRICS countries on Saturday with 100 percent tariffs on their products. This will occur if BRICS challenges the dollar's position as the most important currency in international economic relations.
3:16 PM EST, November 30, 2024
"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 U.S. president wrote on his social media platform, Truth Social.
He emphasized that if BRICS members do not heed 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 organization, which would allow them greater independence from the dollar. However, the idea was not accepted by the other BRICS countries.
According to the Polish Institute of International Affairs (PISM), claims about the dollar's decline appearing in public debate are unfounded and may be part of Russian or Chinese disinformation efforts.
BRICS is a political-economic agreement comprising Brazil, China, India, Russia, and South Africa. Egypt, Ethiopia, Iran, and the United Arab Emirates joined this year. Partner countries include Belarus, Bolivia, Indonesia, Malaysia, Nigeria, Thailand, and Vietnam. Turkey is among the countries seeking such status.
Trump had warned before
A few days earlier, Trump had discussed raising tariffs concerning three countries: China, Canada, and Mexico. He announced 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 supply of drugs, particularly fentanyl, and the invasion of "illegal aliens" into the United States.
American law provides the president with the necessary tools to enforce tariffs via executive orders, which Donald Trump utilized several times during his first term when he imposed them on Chinese and European steel and aluminum.
Following this declaration, Trump met with Canadian Prime Minister Justin Trudeau. The leaders had dinner together at the president-elect's residence at Mar-a-Lago in Florida, where the conversation included trade and the border between the two countries.
Trudeau is the first leader of a G7 country to meet directly with Trump after the election.
