Trump Threatens 100% Tariff On BRICS Nations Over Dollar Rivalry.
US President-elect Donald Trump has warned of imposing a 100% tariff on imports from nine nations within the BRICS alliance if they pursue the creation of a currency to rival the US dollar. The remarks, made via Trump’s social media platform Truth Social, reflect his tough stance on international trade and his determination to maintain the dollar’s dominance in global markets.
“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump declared. He added that countries attempting to create or back a BRICS currency could “say goodbye to selling into the wonderful US economy.”
The BRICS alliance—comprising Brazil, Russia, India, China, South Africa, and expanded to include Iran, Egypt, Ethiopia, and the UAE—has entertained discussions about reducing reliance on the dollar. However, internal divisions within the bloc have slowed any tangible progress on the proposal.
Trump’s campaign trail promises frequently included implementing widespread tariffs, and his recent threats align with this agenda. His rhetoric has been described by some allies as a negotiating tactic. Senator Ted Cruz commented on Face the Nation that “the importance of leverage” often guides Trump’s trade strategy, pointing to previous threats that elicited action from other nations.
Trump’s nominee for Treasury Secretary, Scott Bessent, echoed this sentiment, suggesting the president-elect’s threats may be a calculated opening bid. “At the end of the day, he’s a free trader,” Bessent told the *Financial Times*. He described Trump’s strategy as one of escalation followed by de-escalation.
Tariffs and Their Impact
A tariff is a tax applied to goods as they enter a country, calculated as a percentage of the imported item’s value. For instance, a $50,000 car subject to a 25% tariff would incur a $12,500 tax. While Trump has presented tariffs as a means to grow the US economy and protect jobs, economists widely argue that their costs are often borne by domestic importers and, eventually, consumers.
During his first term, Trump implemented several tariffs, many of which remain in place under President Joe Biden. Economic analyses suggest these measures have often led to higher costs for American businesses and consumers, despite Trump’s assertions to the contrary.
The President-elect is set to take office on 20 January, and his policies on trade and international relations are expected to spark significant debate in the months ahead.
