- BRICS challenges U.S. dollar dominance, facing threats of 100% tax from Trump.
- Trump warns BRICS countries of harsh consequences if they reject the U.S. dollar.
- Experts fear Trump’s duties could disrupt global trade and hurt the U.S. economy.
The ongoing battle between the BRICS nations and President-elect Donald Trump over the dominance of the U.S. dollar in global trade intensifies as both sides brace for potential economic impacts.
BRICS nations are actively working to reduce their reliance on the dollar. In response, Trump has issued a strong warning, threatening 100% tariffs on goods from these countries if they proceed with alternative financial systems.
Russia Defends BRICS Strategy
Russian Deputy Foreign Minister Sergey Ryabkov addressed Trump’s threats, asserting that BRICS is not trying to challenge the U.S. dollar directly but instead reacting to U.S. economic policies. In an interview with Tass, Ryabkov explained that the bloc’s actions result from Washington’s decisions, destabilizing the global financial system.
Ryabkov echoed Russian President Vladimir Putin’s stance, accusing the U.S. of undermining global economic stability with harmful policies.
Trump Issues a Firm Ultimatum
Tensions escalated earlier this month when Trump issued a firm statement about the dollar’s global role. He demanded that BRICS countries halt efforts to adopt alternative currencies or create a new financial system.
Read also: The BRICS Payment System: A Dollar Killer in the Making?
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…
— Donald J. Trump (@realDonaldTrump)
November 30, 2024
Trump warned that any country supporting such initiatives would face 100% export tariffs to the U.S., effectively cutting them off from its market.
Economic Implications of Trump’s Threats
Trump’s proposed measures have raised concerns among economists. Experts warn that such policies could disrupt global trade, raise costs for American consumers, and contribute to inflation.
Countries like Malaysia have expressed fears that taxation could impact the market, pushing BRICS nations to accelerate the development of alternative financial systems. If successful, this could reduce the U.S. dollar’s dominance in international markets.
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