ice casino Trump Threatens BRICS Nations With 100% Tariff — Here’s Why

United States President-elect Donald Trump | Photo: AP United States President-elect Donald Trump | Photo: AP

United States President-elect Donald Trump on Saturday threatened tariffs of 100 per cent against BRICS countries unless their governments agree not to create a new currency as an alternative to the US dollar.ice casino

“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these Countries 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 posted on Truth Social on Saturday.

BRICS Expansion And Rising Push For De-dollarisation

BRICS, initially composed of Brazil, Russia, India, China, and South Africa since 2011, expanded earlier this year. New members include Iran, Saudi Arabia, the United Arab Emirates, Ethiopia, and Egypt — the first expansion in over a decade. 

Thirty-four additional countries have submitted an expression of interest in joining the bloc of major emerging economies, South African Foreign Minister Naledi Pandor said in February.

BRICS nations have long discussed reducing reliance on the US dollar, a move that could undermine its dominance in global markets. The dollar currently accounts for approximately 58 percent of the world's foreign exchange reserves and remains the primary currency for trading commodities like oil, according to International Monetary Fund (IMF) data.

The bloc's growing GDP share and efforts to trade in local currencies have ignited discussions on de-dollarisation. Brazilian President Luiz Inácio Lula da Silva proposed creating a common South American currency in 2023 to reduce dependence on the dollar. Other BRICS nations, including Russia, China, and Iran, see alternative financial systems as a means to bypass Western sanctions.

At a recent BRICS summit, Russian President Vladimir Putin criticised the US for "weaponising" the dollar, calling it a "big mistake." Putin explained, “It’s not us who refuse to use the dollar. But if they don’t let us work, what can we do? We are forced to search for alternatives.”

Trade Tensions

Trump’s tariff threats against BRICS nations follow similar measures against Mexico, Canada, and China. He previously proposed a 25 percent tariff on imports from Mexico and Canada and a 10 percent tax on goods from China, as a way to force the countries to do more to halt the flow of illegal immigration and drugs into the US.

He has since held a call with Mexican President Claudia Sheinbaum, who said Thursday she is confident that a tariff war with the United States can be averted. Meanwhile, Canadian Prime Minister Justin Trudeau returned home Saturday after meeting Trump, without assurances regarding Canada’s tariff situation.

What Are Tariffs?

A tariff is a tax imposed by one country on goods and services imported from another country to influence it, raise revenues, or protect competitive advantages. Countries around the world have long used tariffs to prop up homegrown industries by inducing citizens to buy goods produced domestically. However, after World War II, tariffs largely fell out of favor in advanced economies because they often lead to reduced trade, higher prices for consumers, and retaliation from abroad.

Many nations, however, use tariffs to punish or discourage actions they disapprove of. Doing this can create tensions between two countries and lead to more problems. A typical response for a country with tariffs imposed on it is to respond similarly, creating a trade war in which neither country benefits from the other.

Almost every country imposes some tariffs. In generalice casino, wealthy countries maintain low tariffs compared to developing countries. Developing countries might have more fragile industries they wish to protect or might rely on tariffs as one of the few sources of government revenue.