Trump threatens 100% tariffs to convince BRICS countries to replace the US dollar!
President Donald Trump warned BRICS member countries to replace the US dollar as their reserve currency, repeating a threat of 100% tariffs he made weeks after winning the November presidential election.
"We will be seeking a commitment from these seemingly hostile countries that they will neither create a new BRICS currency, nor support any other currency to replace the mighty U.S. dollar or, they will face 100% tariffs," Trump said on Social Truth in a statement almost identical to the one he posted on November 30.
At the time, Russia said that any US attempt to force countries to use the dollar would backfire.
The BRICS group includes Brazil, Russia, India, China and South Africa, and several other countries that joined in the past two years. The group does not have a common currency, but long-standing discussions on the subject have gained momentum after the West imposed sanctions on Russia over the war in Ukraine.
"There is no chance that BRICS will replace the US dollar in international trade, or anywhere else, and any country that tries to do so will say hello to tariffs and goodbye to America!" he said.
Trump posted his warning to BRICS as Canada and Mexico await his decision to implement a promise to impose 25% tariffs on the North American trading partner from February 1.
Trump wants to use tariffs as a tool to push Mexico and Canada to help stem the flow of illegal drugs into the United States, particularly the deadly opioid fentanyl, and also immigrants crossing into the US illegally.
The dominance of the dollar, the outsized role of the US dollar in the global economy, has strengthened recently, thanks to a strong US economy, tighter monetary policy and heightened geopolitical risks, although economic fragmentation has fueled a push by BRICS countries to move away from the dollar. to other currencies.
A study by the Atlantic Council's Geoeconomic Center last year showed that the US dollar remains the world's leading reserve currency and neither the euro nor the so-called BRICS countries have been able to reduce global dependence on the dollar.
The acronym BRIC, which originally did not include South Africa, was coined in 2001 by then-Goldman Sachs chief economist Jim O'Neill in a research paper highlighting the growth potential of Brazil, Russia, India and China.
The bloc was founded as an informal club in 2009 to provide a platform for its members to challenge a world order dominated by the United States and its Western allies. South Africa was the first beneficiary of an expansion of the bloc in 2010 when the grouping became known as BRICS.
The group added Egypt, Ethiopia, Iran and the United Arab Emirates in 2023, and Indonesia became a member earlier this month.
Poll
Sa ju bindin programet ekonomike të partive për zgjedhjet e 11 majit 2025?
-
Janë të detajuara dhe të realizueshme
-
Kanë ide të mira, por mungojnë detajet e zbatimit
-
Janë premtime të parealizueshme
How did this week end for the major currencies?
The US dollar closed this week volatile, being bought today at 95.3 lek and being sold at 96.6 lek according to the local exchange rate. The European......
The European Investment Bank will invest 95 billion euros in 2025, but only 2 billion euros for defense!
The European Investment Bank (EIB) is targeting an investment of €95 billion by 2025, supporting initiatives ranging from clean technology and artificial......
ECB cuts rates again as inflation nears 2% and growth remains weak!
As analysts had predicted, the ECB cut interest rates on Thursday afternoon during its January meeting. As a result, the interest rates on the deposit......
Denmark, in defense of Greenland - 2 billion euros to increase military presence in the Arctic
Denmark will increase its military presence in the Arctic region, investing around 2 billion euros to defend the territory. The decision comes after tensions......
Germany, pessimistic about the future - Reduces forecast for economic growth in 2025
Germany has cut its economic growth forecast for this year to 0.3%. The German economy has faced major challenges in recent years, affected by global crises......
Road axis, Fier-Patos Turn-Fratar, Balluku inspects the works!
The Minister of Infrastructure and Energy, Belinda Balluku, inspected today the work for the rehabilitation of the road axis, Fier-Kthesa e Patosit-Fratar,......
Spain, with the strongest economic growth in the eurozone - Tourism, agriculture and exports fueled expansion in 2024
Spain had the strongest economic growth in the eurozone in 2024, exceeding the Central Bank's expectations. The rapid growth was helped by tourism, the......
Electricity, "key" to reducing gases - Energy Community seeks additional mechanisms to accelerate transition
The Energy Community Secretariat calls for the inclusion of additional mechanisms to accelerate the energy transition in all member states, including......
