International

Trump Vows 100% Tariffs On BRICS Nations Over Currency Plans

Published

1 month ago

Dec 1, 2024.

Dennis

President-elect Donald Trump announced plans to impose 100% tariffs on countries in the BRICS alliance—comprising China, Russia, and other emerging economies—unless they pledge not to create a new currency during his administration.

“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,” Trump posted on Truth Social on Saturday afternoon.

EDITOR’S PICKS

Since 2011, BRICS has included Brazil, Russia, India, China, and South Africa. Earlier this year, the bloc underwent its first expansion in over a decade, formally adding Iran, Saudi Arabia, the United Arab Emirates, Ethiopia, and Egypt. Additionally, 34 other nations have expressed interest in joining, according to South African Foreign Minister Naledi Pandor.

In 2023, Brazilian President Luiz Inácio Lula da Silva proposed creating a common currency in South America to reduce reliance on the US dollar. Within BRICS, the idea of using member currencies and banking networks outside of the dollar-dominated system has gained traction, especially for countries like Russia, China, and Iran, seeking to bypass Western sanctions. However, significant economic and geopolitical differences among BRICS nations make the prospect of a shared currency unlikely in the near term.

For China, BRICS’ expansion strengthens its efforts to build alliances that challenge the United States’ global leadership. Similarly, Russia sees the group as a vital platform to counter its diplomatic and economic isolation following the 2022 invasion of Ukraine. Russia, which currently holds the rotating BRICS chairmanship, has used the bloc to amplify its global positioning.

At a BRICS summit in October, Russian President Vladimir Putin and Chinese leader Xi Jinping emphasized that the West is increasingly isolated, portraying BRICS as representing a “global majority” seeking to redefine international leadership away from American dominance.