President Trump has reiterated his intention to limit trade with BRICS nations if they attempt to undermine the US dollar.
Donald Trump has asserted that his threat of tariffs against BRICS nations led to the “broke up” of the economic alliance. Speaking at a Republican Governors Association meeting on Thursday, Trump accused BRICS of “trying to destroy our dollar.” He reaffirmed his commitment to reduce trade with BRICS members if they move forward with plans for a shared currency.
Since his reelection in November of last year, Trump has issued several warnings regarding BRICS. He has previously stated that the bloc’s efforts to decrease reliance on other currencies in trade and promote the use of national currencies pose a threat to the dollar’s dominance.
“When I came in, the first thing I said is, any BRICS state that even mentions the destruction of the dollar will be charged a 150% tariff… And the BRICS states just broke up… We haven’t heard from the BRICS states lately,” Trump stated recently. He also suggested that the Biden administration also saw BRICS as a threat but failed to take action, while he claimed that a single threat from him changed the situation.
“They said, sir, what about the BRICS states? They’re going to take over the dollar, the sanctity of the dollar. They’re going to create a new currency to rule the world. I said, no, they’re not… Tell them 150% tariff. Plus, we’re not going to do business with them” Trump said, increasing his proposed tariff from a previous level of 100%.
BRICS, now comprising ten members and representing about 36% of global GDP, has been working to decrease its dependence on Western currencies in trade, particularly after Western sanctions against Russia following the Ukraine conflict in 2022, which effectively isolated Russia from the Western financial system.
While there has been discussion about a BRICS single currency, most member states deny that it has been under consideration. However, BRICS members have increased their use of national currencies to safeguard their interests and facilitate trade between partners. BRICS countries, including Russia, have stated that the US is weakening the dollar through its use of sanctions.
BRICS member states are currently convening in South Africa at the G20 foreign ministers meeting on February 20-21. Prior to the event, Russian Foreign Minister Sergey Lavrov stated that the G20 unites “like-minded BRICS countries and other countries of the Global South and East” and should be used to encourage “Western colleagues to work productively together, rather than to impose their unilateral approaches.”
The US is not attending the meeting, with Secretary of State Marco Rubio claiming South Africa is “doing very bad things” by supporting solidarity, equality, and sustainability within the G20.
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