Donald Trump, the United States president-elect, has announced plans to impose severe economic measures against BRICS nations unless they abandon ambitions to establish a new currency. Speaking via Truth Social, Trump declared that any attempt by BRICS countries to sideline the US dollar would result in a 100% tariff on their exports to the US.
“The idea that the BRICS countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump wrote. He demanded a commitment from BRICS countries to neither create a new currency nor back any alternative to the dollar. Failure to comply, he warned, would mean losing access to the US economy.
The BRICS bloc, comprising Brazil, Russia, India, China, and South Africa, was established in 2011. This year, the group expanded for the first time in over a decade, admitting Iran, Saudi Arabia, the UAE, Ethiopia, and Egypt. According to South African Foreign Minister Naledi Pandor, 34 additional nations have expressed interest in joining the bloc.
Economic Divergences and Currency Proposals
Efforts to create a BRICS currency have gained attention in recent years, with Brazilian President Luiz Inácio Lula da Silva proposing a common South American currency in 2023 to reduce dependence on the US dollar. Such a currency, advocates argue, would enable member nations to bypass dollar-dominated systems and Western sanctions. However, the economic and geopolitical differences among BRICS members make the implementation of a unified currency unlikely in the near future.
For countries like China and Russia, BRICS represents an opportunity to challenge the US-led global order. Russia, currently under extensive Western sanctions due to its invasion of Ukraine, values BRICS as a forum to assert its geopolitical relevance. China, seeking closer partnerships to counterbalance US influence, also views the bloc as strategically important.
At a recent BRICS summit, Russian President Vladimir Putin and Chinese President Xi Jinping highlighted their aim to reshape the global balance of power. They argued that the “global majority” supports their vision, contrasting it with the West’s alleged isolation.
Expanding Tariff Threats
Trump’s stance on BRICS currency ambitions forms part of a broader push to overhaul US trade relations. Earlier this week, he proposed imposing significant tariffs on goods from Mexico, Canada, and China, citing concerns about illegal immigration and cross-border crime. This hardline economic approach echoes Trump’s previous presidency, during which trade wars became a cornerstone of his policies.
Trump’s proposals have already provoked diplomatic responses. Canadian Prime Minister Justin Trudeau recently met with Trump at his Mar-a-Lago estate, describing their discussions as “productive.” Meanwhile, Mexican President Claudia Sheinbaum has issued conflicting statements about her recent conversation with Trump, reflecting the tensions surrounding the tariff announcement.
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