President Trump threatens to impose 100% tariffs on BRICS countries

President-elect Donald Trump warned of imposing 100% tariffs on members of the BRICS group if the bloc seeks to “replace the USD”. “It’s time to end the delusion of the BRICS countries that we will stand still and watch them break away from the USD. We need these countries to commit that they will not establish a new currency, or support the use of other currencies as a replacement for the USD. If they do not commit, they will be taxed 100% and say goodbye to the opportunity to sell to the US,” Donald Trump wrote on Truth Social social network on November 30. The elected President of the United States emphasizes that BRICS “will never be able to replace the USD in international trade.” He also warns that not only emerging economies, but any country that wants to replace the USD in international trade will lose the opportunity to do business with the United States. BRICS is a group of emerging economies, accounting for over 40% of the global population and about 1/4 of the world’s GDP, with members including Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates. At the BRICS summit in October, Russian President Vladimir Putin accused the US of weaponizing the USD. He explained that Russia’s position is not to abandon the USD, but to find alternative solutions due to US obstruction of Russia’s use of the USD in international trade, referring to Western sanctions related to the Ukrainian conflict. The diversification of common currencies, foreign exchange reserves, and the role of other currencies in international payments has been discussed multiple times in BRICS. At the 2023 summit, the group’s agenda was focused on the topic of reducing the influence of the dollar in global trade. Some BRICS members argue that diversifying their reserve currencies will give them more policy autonomy.