Trump Warns BRICS Against Move To Replace USD; Threatens For 100% Tariffs
In the latest development, President-elect Donald Trump warned BRICS against any move to replace the dollar and sought commitments from the nine members, including India, Russia, China and Brazil.
The president-elect asked these countries to commit not to create new BRICS currencies or support any other currencies that might replace the U.S. dollar, otherwise they would face 100% tariffs and lose access to the U.S. market.
The BRICS was established in 2009 and is the only major international organization that the United States is not a member of. Its other members include South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates. It is worth noting that over the past few years, some member countries, notably Russia and China, have been seeking alternatives to the U.S. dollar to create their own BRICS currencies. However, India has so far not participated in this initiative.
Trump warned these countries against such a move in an X post on Saturday, November 30.
“We ask these countries to make a commitment that they will not create new BRICS currencies or support any other currency to replace the strong US dollar, otherwise they will face 100% tariffs and should be ready to say goodbye to a better world. America sells products. The economy,” the president-elect stressed.
“The BRICS countries cannot replace the US dollar”
He firmly stated that it is impossible for the BRICS countries to replace the US dollar in international trade, and further pointed out that any country trying to replace the US dollar should wave goodbye to the United States.
At a recent summit, Russian President Vladimir Putin accused the United States of “weaponizing” the dollar, calling it a huge mistake. Putin emphasized that Russia did not choose to give up the dollar, but was forced to find other options because of U.S. restrictions.
Notably, Trump promised during his campaign that he would make it costly for countries to abandon the dollar. and threatening to use tariffs to ensure they comply.
Efforts to keep dollar dominance intact
Trump and his economic advisers have been discussing how to punish allies and adversaries who seek to conduct bilateral trade in currencies other than the U.S. dollar. These include considering options such as export controls, accusations of currency manipulation and trade taxes.
Trump has long stressed that he wants the U.S. dollar to remain the world’s reserve currency, saying in a March interview with CNBC that he “will not allow countries to abandon the dollar” because it would be “a blow to our country.”
BRICS members express dissatisfaction
The U.S. dollar has long been a cornerstone of global commerce and continues to dominate as the world’s most widely used currency. However, members of the BRICS alliance and developing countries have expressed frustration because they believe the United States has too much control over the global financial system.
The president-elect has already threatened world markets ahead of his second term that he would impose 10% tariffs on goods from China and impose levies on all products from Mexico and Canada if those countries did not take action to control flows. 25% tariff. Illegal drugs and undocumented immigrants crossing the U.S. border.
