Donald Trump is threatening punitive measures against Brics nations should they ditch the dollar for a rival currency for the transactions, APA has learnt on Monday.
Writing on social media, Mr Trump who will assume office in January following his reelection last month said his incming administration will slap 100% tariffs on the nine nations constituting the bloc in the event that they carry out their plans of using a rival currency to conduct international trade.
“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump warned.
The founding Brics members are Brazil, Russia, India, China and South Africa. Other member admitted on board the bloc are Egypt, Ethiopia and the United Arab Emirates.
During his presidential campaign, Mr Trump had vowed serious consequences for these emerging economies if they attempt to cause a ‘rupture’ in the global reputation of the US dollar as the main currency of international transaction.
Trump seems to have made a marker which would commit Brics nations and their allies to refrain from creating a new currency or back an existing one which would pose a challenge to the dollar.
“They will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy,” Trump’s statement on social media platform Truth Social said unequivocally.
However, many among Trump’s political circle say the statement was a mere pitch on the negotiating table instead of a threat to nations whose commitment to a proposed Brics currency remains half-hearted at best.
The nominee for Treasury Secretary in the incoming administration, Scott Bessent gave more than a hint of this to Financial Times when he said what appears like a Trump threat to impose tariff is nothing more than a strategy to go into future negotiations with Brics.
Tariffs are a centerpiece of Trump’s economic recovery plan for the US which he hopes would increase revenue from taxes and protect jobs.
WN/as/APA