US President-elect Donald Trump has warned of imposing 100% tariffs on nine nations within the BRICS bloc if they proceed with creating a currency to rival the US dollar.
On Saturday, Trump took to social media to express his stance, stating, “The idea that BRICS countries are moving away from the Dollar while we do nothing is OVER.” The BRICS alliance includes Brazil, Russia, India, China, South Africa, along with new members Iran, Egypt, Ethiopia, and the UAE.
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During his election campaign, Trump advocated for widespread tariffs and has recently intensified these threats. This latest message targets BRICS, a group of emerging economies discussing alternatives to the US dollar in global trade. While leaders in Brazil and Russia have proposed the creation of a BRICS currency, internal disagreements have stalled progress.
Trump demanded commitments from these nations to refrain from introducing a new BRICS currency or supporting any effort to replace the US dollar, warning that failure to comply would result in severe tariffs and exclusion from the US economy. “They can go find another sucker,” he added on his platform, Truth Social.
However, some of Trump’s allies suggest these statements are negotiation tactics rather than firm policy decisions. Republican Senator Ted Cruz emphasized the strategic use of tariffs as leverage, citing past examples where similar threats prompted diplomatic action.
For instance, Canadian Prime Minister Justin Trudeau recently visited Trump’s Mar-a-Lago estate to address the possibility of a 25% tariff on Canadian goods. Meanwhile, Trump’s nominee for Treasury Secretary, Scott Bessent, has described the approach as “escalate to de-escalate,” implying it’s part of a broader strategy to achieve trade concessions.
Understanding Tariffs
Tariffs are taxes on imported goods, calculated based on their value. For example, a $50,000 car subject to a 25% tariff would incur a $12,500 tax. While Trump views tariffs as a tool to protect American jobs and boost the economy, economists argue that these costs are passed on to domestic importers and ultimately borne by US consumers.
Trump introduced numerous tariffs during his first term, many of which remain under President Joe Biden’s administration. Studies have shown that the financial burden of these tariffs falls largely on US households rather than foreign exporters.
