In a recent statement, US President-elect Donald Trump warned that the BRICS nations (Brazil, Russia, India, China, and South Africa) will face a 100% tariff on their exports to the US if they proceed with plans to undermine the US dollar by introducing a new BRICS currency. This threat follows the BRICS summit in Kazan, Russia, where the nations discussed enhancing the use of local currencies in trade. Trump emphasized that any move to replace the dollar in global transactions would result in severe economic repercussions for these countries.
At the summit, there was a push for strengthening correspondent banking networks and facilitating cross-border payments in local currencies. However, Russian President Vladimir Putin made it clear that while the idea of a unified BRICS currency was discussed, no concrete steps were taken. He also denied the creation of an alternative to the SWIFT system.
Trump’s remarks come as BRICS countries continue their push for greater economic independence from Western financial systems, especially in light of the US’s dominance of global trade and finance. The President-elect expressed confidence that the US dollar will remain the dominant currency in international trade and warned that any attempts to replace it would be met with retaliatory tariffs.
Trump’s comments underline the continuing global power struggle between the US and emerging economies seeking more influence in the financial world. These tensions highlight the growing importance of alternative economic systems and financial tools in a multipolar world.
