America’s new President Donald Trump has once again threatened to impose tariffs on BRICS countries, which includes India. Trump said in his speech on January 20, as soon as he took charge of the presidency, that if BRICS member countries continue to try to reduce their dependence on the US dollar, they will have to face 100 percent tariffs. Trump’s statement also had an impact on the Indian stock market on Tuesday and the Sensex fell by about 850 points in early trade.
“As a BRICS country, if they even think about doing what they think, they will be hit with 100 percent tariffs and so they will leave immediately,” Trump said. He was referring to the efforts of BRICS countries to reduce the use of dollar in international trade.
Donald Trump made these statements in a press conference held in the Oval Office of the White House after taking oath as the 47th President of America. Let us tell you that BRICS, formed in the year 2009, is the only major international organization in the world of which the United States is not a part. Its members include India, Russia, China, Brazil, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates.
In the last few years, some of its member countries, especially Russia and China, have been looking for an alternative to the US dollar for doing international trade. For this, they have also taken the initiative to create their own BRICS currency. However, India has not yet been a part of this initiative.
Trump said, “If the BRICS countries want to do that, that’s fine, but we will impose at least 100 percent tariffs on their trade with the United States… That’s not a threat. In fact when I made that statement , so Biden said they can get us in trouble. I said, no, we can get them in trouble and there’s no way they can do that.”
During the 15th BRICS summit in 2023, Russian President Vladimir Putin called for de-dollarization, saying member countries should expand settlements in their national currencies and increase cooperation between banks.
Reserve Bank of India (RBI) Governor Shaktikanta Das last month said India has not taken any steps towards de-dollarization and is only trying to de-risk domestic trade from international turmoil. Shaktikanta Das stressed that there is no talk of de-dollarization.
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