The president of the United States has threatened to impose 100% tariffs on the rising economies that make up the BRICS group if they stop using the US dollar as a global payment method.
Donald Trump declared on his social media platform Truth Social that “the idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER.”
We will demand a pledge from these ostensibly antagonistic nations that they will not support any alternative currency to the dominant U.S. dollar or develop a new BRICS currency.
Trump went on, “If not, they will be subject to 100% tariffs and should anticipate having to bid farewell to selling into the fantastic U.S. economy.”
The initial letters of the founding members—Brazil, Russia, India, China, and South Africa—are the source of the abbreviation BRICS.
Indonesia joined BRICS in early January 2024, while Iran, Ethiopia, Egypt, and the United Arab Emirates joined in early 2024.
The group wants to serve as a counterbalance to the major Western economic powers that make up the Group of Seven (G7).
Vladimir Putin, the president of Russia, has frequently criticized the U.S. currency’s supremacy and declared his goal to create an autonomous payment and clearing system within the alliance.
In international payment transactions, the U.S. currency is by far the most significant.
Moscow intends to lessen the impact of the Western sanctions placed on Russia for its war in Ukraine by launching a different, non-Western currency.
One kind of fee on imported goods is a tariff.
When commodities arrive in the nation, they are compensated.
During his first term in office, which lasted from 2017 to 2021, Trump levied a variety of tariffs on imported items.
Wide-ranging tariffs are expected to raise costs in the United States, according to economists (dpa/NAN).
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