President-elect Donald Trump has issued a stern warning to the BRICS nations, threatening to impose 100% tariffs if they attempt to shift away from the U.S. dollar.
What Happened: Trump voiced his disapproval over the potential move by the BRICS group to distance themselves from the U.S. dollar.
The BRICS group — which includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates — has been considering ways to utilize its economic power in a world where the U.S. dollar is dominant.
Trump's comments were in response to Russia's call for the BRICS nations to diminish the international dominance of the U.S. dollar.
Using his Truth Social platform, Trump demanded that these countries neither establish a new BRICS currency nor support any other currency to replace the U.S. dollar. Failure to comply with these demands would result in 100% tariffs, according to Trump. He posted the same on X.
This threat comes on the heels of Trump's recent warning of 25% tariffs on imports from major U.S. trading partners such as Canada, China and Mexico.
These latest remarks from the president-elect have further escalated the growing tensions surrounding international trade and currency dominance.
Why It Matters: The BRICS nations, known for their significant influence on regional economies and substantial contribution to world GDP, have been exploring alternatives to the U.S. dollar to reduce their dependency.
This move is seen as a strategic attempt to leverage their collective economic strength. However, Trump's recent threats of hefty tariffs underline the U.S.'s intent to maintain its currency's dominance.
This development could potentially lead to heightened trade tensions and increased volatility in the global financial markets.
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
