Donald Trump's comments come after BRICS members discussed strengthening local currencies and increasing non-dollar trade at a meeting last month.
As Donald Trump becomes office in January, the globe may witness a second round of trade wars. If the BRICS nations, including India, undercut the US dollar or switch to another currency for cross-border commerce, the US president-elect has threatened to impose a 100% tariff on them. His comments come after a BRICS meeting in October where the topic of increasing non-dollar transactions was discussed. Brazil, Russia, India, China, South Africa, and other nations make form the BRICS alliance.Trump declared this morning that he would not stand by and watch the BRICS abandon the currency in a damning online article.
"The notion that the BRICS nations are attempting to abandon the dollar while we look on is OVER. The Republican leader who won a landslide victory in last month's presidential election stated, "We need these countries to commit that they will not create a new BRICS currency or support any other currency to replace the powerful U.S. dollar. If they do, they will be subject to 100% tariffs and should expect to say goodbye to selling into the wonderful US economy."
The BRICS nations will not be able to substitute another currency for the dollar in international trade, despite the president-elect's suggestion that they should look for another "sucker.""They can go find another jerk!"There is no chance that the BRICS will replace the US Dollar in International Trade, and any Country that tries should wave goodbye to America," Trump stated.
The Dollar and BRICS
At a summit in Kazan, Russia, in October, the BRICS nations—which now also include Egypt, Iran, and the United Arab Emirates—discussed strengthening local currencies and increasing non-dollar transactions.
At the October summit, a consensus statement was reached for the "strengthening of correspondent banking networks within BRICS and enabling settlements in local currencies in line with BRICS Cross-Border Payments Initiative."
At the conclusion of the summit, Russian President Vladimir Putin did, however, state that no substitutes have been developed to rival the financial messaging system SWIFT, which is situated in Belgium.
India has also stated that it opposes dedollarization. That's not part of India's economic, political, or strategic plans, Foreign Minister S Jaishankar stated in October. However, he had stated that workarounds are considered when trading partners refuse to accept dollars or when problems arise because of trade policies.
India, Trump, and Tariffs
Trump has previously been irritated by China's and Brazil's tariff policies. He incorporates the idea of reciprocity against protectionist regimes into his tariff proposal for 2025.Trump had made it clear that this was the most crucial component of his strategy to make the US "extraordinarily wealthy" a month prior to the elections.
Since we often don't impose tariffs, reciprocity is a key concept in my strategy. That process, which I initiated, was fantastic, complete with vans and small trucks, etc. We don't actually charge. We will be subject to a 200 percent tariff from China. In October, he had declared, "Brazil is a big charger."
He had declared, "The biggest charger of all is India," but he had also praised Prime Minister Narendra Modi and the relationship between the US and India.
"I mean, they certainly charge more than China in a lot of ways. But they smile as they do it. They carry it out...A nicer fee, sort of. During his speech at the Detroit Economic Club, he said, "They said thank you so much for purchasing from India."
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