President-elect Donald Trump threatened to impose 100% tariffs on a bloc of nations known as BRIC if they take actions to undermine the U.S. dollar.
The BRIC alliance consists of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates, with Turkey, Azerbaijan, and Malaysia applying for membership.
The big picture: The alliance and other developing nations are challenging the dominance of the U.S. dollar in the global financial system, with plans for de-dollarization by trading in non-dollar currencies.
- Trump demanded a commitment from these countries not to create a new BRICS currency or support any currency to replace the U.S. dollar, threatening them with 100% tariffs otherwise.
Flashback: Trump’s tariff threat follows previous threats against Mexico, Canada, and China, as part of efforts to address issues such as illegal immigration and drugs entering the U.S.
What he’s saying: “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 U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy,” Trump said on Truth Social.
