US President Donald Trump Threatens 100% Tariffs Against Countries in BRIC Alliance for Undermining US Dollar
President-elect Donald Trump has threatened to impose 100% tariffs on all imports from nine countries within the BRIC alliance – Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates – if they actively work to undermine the US dollar. BRIC countries have been striving to reduce their dependence on the US dollar in trade and have expressed interest in creating a new currency as an alternative.
The USD represents approximately 58% of the world’s foreign exchange reserves, according to the International Monetary Fund, and is still the predominant currency used for commodities trading, including oil. TRUMP stated in a posting on Truth Social that failing countries to make a “commitment to neither creating a new BRICS Currency nor backing any other currency to replace the mighty USD” would result in massive tariffs and a possible goodbye to selling into the US Economy.
Russian President Vladimir Putin has previously criticized the “weaponization” of the US dollar and emphasized his country’s need to locate alternatives. Trump stated his opinion that there is ‘no chance’ the dollar will be replaced globally within the near future, regardless of any country’s resistance.
Research by the Atlantic Council suggests the dollar enjoys a secure position in near and medium terms and continuously dominates other currencies. Last week, Trump threatened retaliatory tariffs on imports from Mexico and Canada and hinted at additional 10% taxes on goods from China.
