President-elect Donald Trump announced a stunning 100% tariff on all imports from the BRICS nations. Trump, who vowed to “Make America Great Again” is now promising to turn it into an economically isolated fortress.
In a Truth Social post on Saturday, Donald Trump issued a stern warning to China and its trade allies regarding their plans to replace the US dollar as the global currency. This latest bombshell comes as BRICS, a coalition of Brazil, Russia, India, China, and South Africa exploring alternatives to the US dollar, has been toying with the idea of creating a new currency to compete with the greenback. The group recently expanded to include Egypt, Iran, Ethiopia, and the UAE.
During the BRICS summit held in Kazan in October, Putin criticized the use of the US dollar as a political tool. Putin highlighted that this practice undermines global trust in the currency, which remains crucial in international finance. While Putin clarified that Russia is not rejecting the dollar, he noted the need for alternatives if they face restrictions. He warned that continued reliance on such systems could prolong global economic instability, referencing current turbulence in the Middle East.
Trump’s response? A simple “Not on my watch.” Trump posted on his social media platform, Truth Social, “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 will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”
He added: “They can go find another ‘sucker!’ There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America.”
The BRICS seeks to create a gold-backed shared currency. Trump’s post highlights his intent to counter moves that challenge U.S. economic supremacy.
What does this mean for the future of world trade? And as always, the real winners and losers will be determined not in the halls of power but in the markets and on the streets. Well, Trump made his move clear on Saturday. It is up to BRICS to decide whether to proceed with their goal and face the wrath of the United States or abort it.
Fyodor Lukyanov, chair of the Council on Foreign and Defense Policy (Russia) for the Council of Foreign Relations, stated that Trump’s threat against BRICS members may prove effective if “not all member states consider their participation in the bloc a priority.”
He added: “However, the general movement toward diversification of the world order and away from any one group’s domination will continue, and the BRICS will play an increasing role in this.”
In the game of global politics, nothing ever is as cut and dried. The Trump tariffs are meant to save America’s interests, yet they may just rebound, hitting the people they are supposed to help. The time will show whether this was a stroke of economic genius or a massive blunder.
