The U.S. President has warned the BRICS group of emerging economies that they could face a 100 percent tariff if they shift away from using the U.S. dollar as the global currency for payments.
“The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER,” Donald Trump said on his social media platform Truth Social.
“We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar.
“If not, they will face 100 per cent Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy,” Trump continued.
The acronym BRICS stands for the initial letters of its founding members: Brazil, Russia, India, China, and South Africa.
In early 2024, Iran, Ethiopia, Egypt, and the United Arab Emirates joined BRICS, followed by Indonesia in January.
The group seeks to serve as a counterbalance to the Group of Seven (G7), the major Western economic powers.
Russian President Vladimir Putin has consistently criticized the dominance of the U.S. dollar and expressed his intention to create an independent payment and clearing system within the BRICS alliance.
The U.S. dollar remains the most widely used currency for global transactions.
By introducing an alternative, non-Western currency, Moscow aims to reduce the impact of sanctions imposed by the West over its ongoing war in Ukraine.
Tariffs are taxes placed on imported goods, paid when the goods enter the country.
During his first term from 2017 to 2021, President Trump imposed various tariffs on imported goods.
Economists predict that extensive tariffs could lead to higher prices in the U.S.
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