Donald Trump issues 100% tariff threat on BRICS nations including India if dollar is undermined
Washinton DC/IBNS: US President-elect Donald Trump has issued a stern threat to impose 100% tariffs on a bloc of nine nations, known as BRICS, if they act to undermine the US dollar.
He directed his threat at countries in the BRIC alliance, which consists of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates.
In addition to these, Turkey, Azerbaijan, and Malaysia have applied to become members, and several other countries have expressed interest in joining.
In a post on Truth Social, Trump on Saturday wrote, "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 US Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful US Economy."
He went on to say: "They can go find another 'sucker'. There is no chance that the BRICS will replace the US Dollar in International Trade, and any Country that tries should wave goodbye to America."
Trump went on to suggest that the BRICS countries can go find another "sucker", but the group will never be able to replace the dollar in international trade with another currency.
"They can go find another "sucker!" There is no chance that the BRICS will replace the US Dollar in International Trade, and any Country that tries should wave goodbye to America," said Trump.
BRICS and Dollar row:
The BRICS countries have been considering non-dollar transactions and ways to strengthen local currencies at a summit in Russia's Kazan in October.
Russia, in particular, pushed to create a new payment system that would offer an alternative to the global bank messaging network SWIFT. According to reports, the platform would allow Moscow to dodge Western sanctions and trade with partners.
India's reaction:
Even as India is a part of BRICS, it has said it's against de-dollarisation.
In October, Foreign Minister S Jaishankar said the matter is not part of India's economic policy or political or strategic policies. However, he said an alternative can be considered in cases where trade partners do not accept dollars.
Earlier, Trump had been agitated with India's economic policy. His tariff plan for 2025 includes the concept of reciprocity against protectionist regimes.
While campaigning for the elections, Trump had clarified that this was the most important element in his plan to make the US "extraordinarily wealthy".
Canada's reaction:
Soon after the announcement, Canadian Prime Minister Justin Trudeau travelled to Florida to have dinner with Trump at his Mar-a-Lago club.
Trudeau's meeting followed Trump's warning that if Canada and Mexico did not check on the flow of drugs and migrants at their borders, he would impose a 25% tax on all imports to the U.S. as a part of his first executive orders.
Thanks for dinner last night, President Trump. I look forward to the work we can do together, again. pic.twitter.com/lAWFMTtQt7
— Justin Trudeau (@JustinTrudeau) November 30, 2024
Despite Trump’s past criticisms of Trudeau, where he referred to him as “weak” and “dishonest” during his first term, the relationship between the two nations has remained strong.
Trudeau has become the first leader from the Group of Seven countries to meet with Trump since the November 4 election.
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