President-elect Donald Trump has threatened to impose 100% tariffs on countries that are part of the BRICS group, a China- and Russia-backed alliance of emerging economies, if they create a new currency or back an alternative to the US dollar.
In a post on Truth Social, Trump stated that he requires a commitment from BRICS countries to neither create a new BRICS currency nor back any other currency to replace the US dollar, adding that if they do, they will face 100% tariffs and will have to say goodbye to selling into the US economy.
The BRICS alliance, which comprises Brazil, Russia, India, China, and South Africa, has been expanding its membership, with 34 countries having submitted expressions of interest in joining the group. However, the idea of creating a common currency has been met with skepticism, with some experts citing economic and geopolitical differences among member countries.
The BRICS alliance is valuable to China as it looks to forge closer partnerships with key players to challenge the US’s global leadership, while also providing a boon to Russia, which has been shunned economically and diplomatically by the West following its 2022 invasion of Ukraine. Russia assumed the rotating chairmanship of the group this year.
Trump’s latest economic threat comes days after he pledged massive hikes in tariffs on goods coming from Mexico, Canada, and China, citing illegal immigration, crime, and drugs coming across the border. He has also spoken with the leaders of these countries, with the Mexican president offering conflicting statements on their call and the Canadian prime minister describing their meeting as “excellent” and “very productive”.