Donald Trump threatens BRICS with tariffs, don’t even think about challenging the dollar… Donald Trump’s open threats to BRICS groupings like India and Russia – Donald Trump’s threats to BRICS Tariff threat if they weaken dollar

Washington: Newly elected US President Donald Trump has threatened to impose 100% tariffs on BRICS countries. Trump said on Saturday the tariffs were aimed at weakening the dollar and supporting other currencies. Trump threatened the BRICS, which includes important countries in the world such as Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates. Turkey, Azerbaijan and Malaysia have also expressed a desire to join the BRICS, with Donald Trump saying that if the BRICS countries create a new currency to replace the dollar or support another currency, they will have to face 100% tariffs . Trump said on social media that the BRICS countries will have to continue to use U.S. dollars to sell goods to the United States. If they don’t, they will be driven out of the U.S. market. BRICS currencies cannot replace the US dollar in international trade.

Trump targets Russia

Donald Trump is trying to target Russia with this statement. At this year’s BRICS meeting in Russia, alternative currencies to the U.S. dollar were discussed. Russia particularly emphasized this point. The U.S. dollar is the most widely used currency in global trade, but the BRICS meeting sparked discussions among them as they look to challenge the U.S. dollar’s dominance. In this case, Trump warned BRICS countries not to try to challenge the hegemony of the US dollar.

The U.S. dollar accounts for approximately 58% of the world’s foreign exchange reserves. Major commodities such as oil are still primarily traded in U.S. dollars. Still, Trump is concerned that the BRICS’ intention to trade in non-dollar currencies threatens the dollar’s ​​dominance. This is called de-dollarization.

At the BRICS summit in October this year, Russian President Putin emphasized the establishment of a new payment system. The system will be an alternative to SWIFT, the global banking information network. This allows Moscow to avoid Western sanctions and trade with its allies. Since then, U.S. concerns have shifted in this direction.