Trump Threatens BRICS with Tariffs on New Currency
In a bold move that has sent shockwaves through the international community, U.S. President-elect Donald J. Trump took to his social media platform, Truth Social, to issue a warning to the BRICS grouping, which includes key member India. Trump threatened the imposition of “100 percent tariffs” if BRICS were to adopt a joint new currency or support alternatives to the U.S. dollar.
This threat, aimed at safeguarding the dollar’s dominance in global trade, was delivered in a social media post early Dec.1, where Trump unequivocally stated, “The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is OVER.”
BRICS: A Significant Global Bloc
BRICS, an acronym for Brazil, Russia, India, China, South Africa, is a powerhouse of five major emerging economies. Together, these nations represent about 40% of the global population and over 25% of the world’s GDP. This year, BRICS has expanded to include nations like Iran, Egypt, Ethiopia, and the United Arab Emirates, now encompassing half of the world’s population.
Global Reactions and Concerns
The reactions to Trump’s threats have been mixed, with Russian President Vladimir Putin cautioning against the use of the dollar as a weapon and Indian Prime Minister Narendra Modi emphasizing that BRICS should not be seen as a group aiming to replace global institutions.
Expert Richard Rossow, a senior adviser on US-India relations, highlighted the complexities involved in creating a joint currency for BRICS nations, especially given India’s concerns about a China-led currency dominating the group.
The Future of BRICS and Trump’s Influence
As speculation swirls around the future of BRICS and the impact of Trump’s warnings, it remains to be seen how this geopolitical chess game will unfold. While Russia has advocated for alternative payment systems to reduce reliance on the dollar, experts like Rossow suggest that BRICS’s practical impact is limited to joint lending programs under the New Development Bank.
As Trump prepares for his second term in office, the question of whether his push for “de-dollarization” will materialize or dissipate remains unanswered. Only time will tell how this high-stakes standoff between global economic giants will play out.
Mythili Devarakonda, a seasoned journalist with a passion for storytelling and a deep understanding of international affairs, brings a fresh perspective to this unfolding saga. With her dedication to quality reporting and commitment to serving diverse communities, Mythili’s insights promise to shed light on the complexities of this global economic landscape.
