100% Tariff Threat: Trump Targets BRICS Currency Ambitions
President-elect Donald Trump announced his intent to impose 100% tariffs on countries within the BRICS alliance unless they commit to abandoning plans for creating a new currency to rival the U.S. dollar.
In a Truth Social post on Saturday, Trump stated, “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”
The BRICS bloc, comprised of Brazil, Russia, India, China, and South Africa since 2011, expanded earlier this year to include Iran, Saudi Arabia, the United Arab Emirates, Ethiopia, and Egypt. This marks the group’s first expansion in over a decade, with 34 additional countries expressing interest in joining, according to South African Foreign Minister Naledi Pandor.
Brazilian President Luiz Inácio Lula da Silva has previously floated the idea of a South American common currency to reduce reliance on the U.S. dollar. Similarly, a BRICS-based currency system could provide a mechanism for nations like Russia, China, and Iran to bypass U.S.-led sanctions. However, analysts suggest the prospect of a unified BRICS currency remains unlikely, given the group’s internal economic and geopolitical differences.
For China, the bloc’s expansion bolsters its bid to challenge U.S. global influence. Russia, which assumed the BRICS chairmanship this year, views the alliance as a critical platform amid its growing economic and diplomatic isolation following the 2022 invasion of Ukraine.
Trump’s tariff warning against BRICS follows his earlier pledge to raise tariffs on goods from Mexico, Canada, and China, citing concerns about illegal immigration, crime, and drug trafficking.
In recent days, Trump has engaged with key leaders on economic issues. He held a call with Mexican President Claudia Sheinbaum following his tariff announcement, though their accounts of the conversation differ. Meanwhile, Canadian Prime Minister Justin Trudeau met with Trump at his Mar-a-Lago estate, describing their discussion as an “excellent conversation.” Trump called the meeting “very productive.”
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