President-elect Donald Trump is back with another tariff threat as he warns of a 100% tariff to be placed on BRICS nations looking to abandon the U.S. Dollar.
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On Saturday (November 30), Donald Trump took to Truth Social, where he threatened to impose a 100% tariff on nations that are a part of BRICS and attempt to replace or fully move away from trading using the U.S. Dollar.
Note: BRICS is an intergovernmental organization comprised of nine non-Western countries (Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates). The organization was first founded by Brazil, Russia, India, and China in 2009, with South Africa joining a year later to create the BRICS name. At a summit in 2023, the group expanded for the first time in over a decade, with Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates joining in.
At the same 2023 BRIC summit, the nations discussed the issue of “de-dollarization,” or removing the influence of the U.S. Dollar in global trade. Although this idea wasn’t new for the group, it gained traction heavily last year. In August of 2023, news site Al Jazeera reported that experts are skeptical about BRICS successfully creating and operating off of its own currency.
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Shirley Ze Yu, a senior visiting fellow at the London School of Economics, told Al Jazeera, “Creating the BRICS currency will require a set of institutions. Institutional creation requires a common set of standards and underpinning values. These are very difficult to achieve, although not impossible.”
Additionally, Chris Weafer, an investment analyst with Macro-Advisory, a strategic consultancy that focuses on Russia and Eurasia, called the idea of a BRICS currency a “non-starter,” adding, Even people in various governments know that this is not going to happen, or not for a very, very long time. The idea of the BRICS creating an alternative to the dollar seems completely fanciful and unrealistic.”
The organization was originally formed to highlight investment opportunities; and at its annual formal summits, its nations’ governments meet and coordinate multilateral policies.
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In response to these ideas of abandoning the U.S. Dollar, on Saturday, taking to his official account on Truth Social, Donald Trump threatened BRICS nations and wrote, “The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER.”
Trump added, “We require a commitment from these countries [stating] 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.”
Trump concluded, “They can go find another ‘sucker!’ There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America.”
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