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.
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