President-elect Donald Trump announced plans to impose a 100% tariff on the BRIC nations if they attempt to undermine the U.S. dollar.
Trump’s statement was aimed at countries within the BRIC alliance, which includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates.
This move comes as a response to concerns about the possibility of these nations adopting measures that could weaken the dollar’s standing in international markets.
The BRIC bloc, originally formed as BRICS, is known for its significant economic influence globally. It represents a large portion of the world’s population and gross domestic product.
The potential tariff threat is seen as a part of Trump’s broader economic strategy, as he seeks to protect U.S. interests and the dollar’s dominance in global trade.
During a recent summit, Russian President Vladimir Putin criticized the U.S. for allegedly “weaponizing” the dollar, claiming that the U.S. uses its currency as a tool for exerting economic pressure.
He indicated that this approach forces BRIC countries to explore alternative currencies for international transactions.
While the dollar remains the most widely used currency globally, the BRIC nations are seeking to strengthen their economic and political ties by considering other currency options.
Trump’s proposal was communicated through a social media post, where he emphasized the need for a commitment from these countries to not create or support a new currency that might replace the U.S. dollar.
He warned that non-compliance would result in a 100% tariff being imposed on goods from these nations, effectively cutting them off from the American market.
