Trump Declares Economic War on BRICS, Threatens Massive Tariffs Over Currency Plans

President-elect Donald Trump has issued a warning to the BRICS nations, threatening to impose 100% tariffs on countries attempting to create a rival currency to the US dollar. In a social media statement, Trump declared that the era of standing by while BRICS countries seek to move away from the dollar is over.

The BRICS alliance, which includes major world powers China and Russia, along with Brazil, India, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates, has been exploring alternatives to the US dollar’s global trade dominance. Leading politicians in Brazil and Russia have suggested creating a BRICS currency, though internal disagreements have slowed progress.

Trump’s message was unequivocal: “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 US dollar or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy.”

The president-elect’s rhetoric aligns with his long-standing campaign promises of implementing widespread tariffs. During his previous term and current campaign, Trump has consistently positioned tariffs as a key economic strategy to protect US interests and jobs.

Some political observers and Trump allies suggest these announcements may be strategic negotiation tactics rather than definitive policy. Republican Senator Ted Cruz highlighted the “importance of leverage,” pointing to previous instances where tariff threats have prompted action from other countries.

Trump’s approach to tariffs has been controversial. While he claims these taxes are not a cost to US consumers, economists widely dispute this assertion. In reality, tariffs are typically paid by domestic companies importing goods, effectively functioning as a tax that often gets passed on to consumers through increased prices.

During his previous presidency, Trump imposed numerous tariffs, many of which remain in place under the Biden administration. Economic studies have consistently shown that the economic burden of these tariffs is largely borne by US consumers, contrary to Trump’s claims.

The potential for a BRICS currency represents a significant challenge to the US dollar’s global financial hegemony. While the alliance has discussed such a move, concrete plans remain elusive due to internal disagreements and complex geopolitical considerations.

Trump’s threat comes at a time of increasing global economic multipolarization, with emerging economies seeking greater financial independence from the US-dominated international monetary system. The president-elect’s aggressive stance reflects a broader approach to international economic relations that prioritizes US economic interests and seeks to maintain the dollar’s global primacy.

As Trump prepares to take office on January 20th, his comments signal a potentially confrontational approach to international economic policy, suggesting that trade and currency issues will be a key focus of his administration’s foreign economic strategy.