US President-elect Donald Trump has threatened to impose 100% tariffs on a bloc of nine nations if they proceed with creating a rival currency to 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 declared on social media on Saturday.
Major world powers China and Russia are part of the BRICS alliance, which also includes Brazil, India, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates. Trump, who campaigned on implementing widespread tariffs during the US election, has recently intensified his threats of steep levies.
This latest message from Trump, who will assume office on 20 January, was directed at BRICS—a bloc of mostly emerging economies. Leading politicians in Brazil and Russia have floated the idea of creating a BRICS currency to reduce the US dollar’s dominance in global trade, but internal disagreements have hindered progress.
“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,” Trump wrote on his social media platform, Truth Social. “They can go find another sucker,” he added.
Some Trump allies, however, have suggested that his statements are part of a broader negotiation strategy rather than firm policy declarations. Asked about the president-elect’s proposed use of tariffs, Republican Senator Ted Cruz emphasised the “importance of leverage,” citing past instances where tariff threats yielded results. “You look at the threat of tariffs against Mexico and Canada, immediately has produced action,” Cruz said on CBS News’ Face the Nation on Sunday.
On Friday, Canadian Prime Minister Justin Trudeau made an unscheduled visit to Trump’s Florida estate, Mar-a-Lago, in an apparent effort to avert a potential 25% tariff on Canadian goods entering the US.
Trump’s nominee for Treasury Secretary, Scott Bessent, has also indicated that the president-elect’s aggressive rhetoric on tariffs may be part of a negotiating tactic. “My general view is that at the end of the day, he’s a free trader,” Bessent told the Financial Times in an interview before his nomination. He characterised Trump’s approach as “escalate to de-escalate.” (BBC)
