U.S. President Donald Trump has threatened the BRICS group of emerging economies with tariffs of 100 per cent if they move away from the U.S. dollar as an international means of payment.
“The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER,” Donald Trump said on his social media platform Truth Social.
“We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar.
“If not, they will face 100 per cent Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy,” Trump continued.
The acronym BRICS is derived from the initial letters of the founding member countries Brazil, Russia, India, China and South Africa.
In early 2024 Iran, Ethiopia, Egypt and the United Arab Emirates joined BRICS, while Indonesia joined at the beginning of January.
The group aims to act as a counterweight to the Group of Seven (G7) of leading Western economic powers.
Russian President Vladimir Putin has repeatedly criticised the dominance of the U.S. currency and announced his intention to establish an independent payment and clearing system within the alliance.
The U.S. currency is by far the most important in global payment transactions.
By introducing another, non-Western currency, Moscow hopes to be less affected by the sanctions imposed on Russia by the West over its war in Ukraine.
Tariffs are a type of surcharge on imported goods.
They are paid as goods enter the country.
Trump imposed a range of tariffs on imported goods during his first term in office from 2017 to 2021.
Economists assume that far-reaching tariffs would lead to an increase in prices in the U.S.
