US President-elect Donald Trump has threatened to levy 100% tariffs on BRICS — a China- and Russia-led group of nations with emerging economies — if the countries decide to issue their own currency.
Trump said Saturday that his incoming administration will not allow the nine-nation group, which has 34 other countries interested in joining, to undermine the US dollar.
“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump wrote on Truth Social — referring to the group whose acronym stands for founding members Brazil, Russia, India, China and South America.
“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 US Economy,” he added.
BRICS was founded by the five original countries in 2011. Iran, the United Arab Emirates, Ethiopia and Egypt have since joined, with Saudi Arabia accepting an invitation but yet to officially become a member. More than two other countries have expressed interest in joining the economic alliance, too.
Last year, Brazilian President Luiz Inacio Lula de Silva proposed that BRIC create its own common currency, similar to the European Union’s euro, to reduce its members’ reliance on the US dollar.
Under a united BRICS currency system, member nations such as Russia, China, and Iran could circumvent Western sanctions placed on them over their military aggression.
It would also mitigate the West’s efforts to isolate Russia and Iran, and it gives China the opportunity to strengthen its foreign partnerships and challenge America’s role as a global leader.
Still, the likelihood of the BRICS nations coming together to form their own currency remains slim, given each nation’s vast economic and political differences.
The US’s threat of tariffs to discourage the move has remained Trump’s key tool for socio-economic issues as he prepares to return to the White House next month.
Last week, Trump vowed to issue an executive order imposing 25% tariffs on all US imports from Mexico, Canada and China on his first day in office.
The president-elect wrote on social media that the tariff would “remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
Trump further pledged that he would slap China with an additional 10% tariff — on top of existing ones — for failing to curb illicit fentanyl exports.