In a shocking move, former US President Donald Trump has threatened the BRICS group of emerging economies with 100% tariffs if they attempt to replace the US dollar as an international means of payment. Trump took to his social media platform, Truth Social, to issue the warning, stating that the idea of BRICS countries moving away from the dollar is “over”.
Trump’s threat comes as the BRICS nations, which include Brazil, Russia, India, China, and South Africa, as well as newer members Iran, Ethiopia, Egypt, the United Arab Emirates, and Indonesia, explore alternatives to the US dollar. Russian President Vladimir Putin has been vocal about reducing dependence on the US currency, citing the need for an independent payment and clearing system within the alliance.
The US dollar remains the most widely used currency in global payment transactions. However, by introducing a non-Western currency, Moscow hopes to reduce its vulnerability to Western sanctions imposed over the Ukraine conflict.
Trump’s threat of 100% tariffs on BRICS countries is a significant escalation. Tariffs are a type of surcharge on imported goods, paid as goods enter the country. While tariffs may protect domestic industries, economists warn that far-reaching tariffs could lead to increased prices in the US.
