Donald Trump has reiterated his threat to impose 100% tariffs on goods from BRICS nations if they move away from the US dollar. He insists that any attempt by these countries to create or support a new currency to replace the dollar will face severe consequences. The BRICS group, which includes Brazil, Russia, India, China, and South Africa, along with newcomers Egypt, Ethiopia, Iran, and the UAE, aims to reform the global economic system dominated by Western institutions like the World Bank and IMF.
The group seeks to increase trade amongst themselves and reduce reliance on the dollar, which remains the world’s primary reserve currency. At a recent summit in Kazan, discussions on a common currency took place, but the initiative remains on hold. Meanwhile, Trump is also targeting Canada and Mexico with 25% tariffs over issues of illegal immigration and drug smuggling, despite existing free trade agreements.
Critics argue that such tariffs could lead to inflation in the US, as economists warn of rising prices. The tariffs, viewed as a negotiating tactic by Trump, are set to take effect soon, potentially impacting trade relations and the economies of both Mexico and Canada. The ongoing threats underscore Trump's commitment to leveraging tariffs as a tool to address national security and economic concerns, even as global markets watch with apprehension.
China has responded with a warning against protectionism, advocating for cooperative solutions. As Trump's tariff threats loom, they highlight the fragile balance in international trade and finance, with the potential to shift alliances and economic strategies worldwide.
