Trump Threatens BRIC Nations with 100% Tariffs Over Dollar

Trump Threatens BRIC Nations with 100% Tariffs Over Dollar \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President-elect Donald Trump has threatened 100% tariffs against BRIC nations if they pursue alternatives to the U.S. dollar in global trade. The alliance, which includes nine countries, has expressed frustration with U.S. financial dominance and proposed creating its own currency. Trump insists the dollar remains indispensable, warning nations to avoid challenging its supremacy or risk economic retaliation.

Trump’s Tariff Threats to BRIC Nations: Quick Looks

• Target of Threats: Trump warns BRIC countries against introducing a new currency.
• Expanding Alliance: BRIC includes nine nations, with more applying for membership.
• Alternative Systems: Russia and others push for non-dollar trade mechanisms.
• Dollar Dominance: Despite critiques, the dollar remains the global reserve currency.
• High Stakes: Tariffs could disrupt trade and deepen U.S.-BRIC tensions.

Deep Look

Trump’s Bold Warning to BRIC Nations

President-elect Donald Trump issued a sharp warning on Saturday to the BRIC alliance—a bloc of nations exploring alternatives to the U.S. dollar’s dominance in global trade. Trump threatened to impose 100% tariffs on any BRIC members that actively seek to replace the dollar with a new currency or back efforts to weaken its position.

In a strongly worded Truth Social post, Trump declared:
“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.”

BRIC’s Rising Ambitions

The BRIC alliance, originally consisting of Brazil, Russia, India, China, and South Africa, has expanded to include Egypt, Ethiopia, Iran, and the United Arab Emirates. The group has grown in influence, representing a significant portion of the global population and GDP. Turkey, Azerbaijan, and Malaysia have applied to join, and several other countries have expressed interest.

BRIC members and their allies have long voiced frustration over the U.S.-led global financial system, which they argue disproportionately benefits America. They have proposed creating an alternative currency and financial mechanisms to reduce reliance on the dollar, citing its use as a tool for economic sanctions and political leverage.

Dollar’s Dominance and BRIC’s Push for Alternatives

The U.S. dollar has maintained its status as the world’s reserve currency for decades, facilitating international trade and investment. However, this dominance also gives the U.S. outsized influence over global financial markets.

At an October BRIC summit, Russian President Vladimir Putin accused the U.S. of “weaponizing” the dollar, saying it was being used as an instrument of sanctions and control. “It’s not us who refuse to use the dollar,” Putin said. “But if they don’t let us work, what can we do? We are forced to search for alternatives.”

Russia has actively pushed for creating a new payment system to bypass the U.S.-led SWIFT network, which is widely used for international financial transactions. This initiative would allow BRIC nations to trade freely without fear of sanctions, offering a potential lifeline for countries like Iran and Russia.

Trump’s Hardline Stance

Trump’s response to these developments has been unequivocal. He dismissed the possibility of BRIC replacing the dollar in global trade and warned of severe economic consequences for any nation that tries. “There is no chance BRIC will replace the U.S. dollar in global trade,” Trump stated, adding, “Any country attempting this should wave goodbye to America.”

The proposed tariffs would effectively block BRIC nations from accessing the U.S. market, one of the largest in the world. For countries within the alliance, this could mean a significant loss of export revenue, further straining their economies. However, such aggressive measures could also spark retaliatory actions, leading to broader disruptions in global trade.

Expansion of the BRIC Alliance

The growing interest in BRIC membership underscores the appeal of a multipolar financial system. Countries like Turkey, Azerbaijan, and Malaysia see the alliance as an opportunity to challenge Western dominance and pursue more equitable trade relations. The bloc’s expansion could amplify its influence, creating a formidable counterweight to the G7 economies.

Criticism of U.S. Financial Control

Critiques of the U.S.-led financial system are not new. Developing nations often argue that the dollar’s dominance enables the U.S. to impose unilateral sanctions and maintain a disproportionate share of global wealth. This criticism has gained traction as countries like China and Russia take steps to reduce their reliance on the dollar.

China, for example, has been increasing its use of the yuan in international trade and building reserves of gold. These efforts are part of a broader strategy to challenge U.S. financial hegemony and promote a more balanced global economy.

High Stakes for Global Trade

Trump’s tariff threats mark a critical moment in U.S.-BRIC relations. While the dollar remains entrenched as the world’s reserve currency, the growing cohesion among BRIC nations could signal a shift in the global financial landscape.

If BRIC succeeds in creating a viable alternative currency or payment system, it could weaken the dollar’s dominance over time. However, such a transition would be complex and fraught with challenges, including securing broad international adoption and overcoming technical and political hurdles.

Trump’s America-First Strategy

Trump’s hardline approach reflects his broader “America First” strategy, which prioritizes U.S. economic interests over multilateral cooperation. While this stance may resonate with his domestic base, it risks alienating key trade partners and accelerating efforts to create alternatives to the U.S.-led system.

The escalating tensions between the U.S. and BRIC nations underscore the fragile state of global trade relations. As the alliance expands and explores new financial mechanisms, the U.S. may face increasing pressure to adapt its policies or risk losing influence in an evolving global order.

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