US President-elect Donald Trump has threatened 100% tariffs on BRICS nations if they create a rival to the US dollar.
“The BRICS Countries trying to move away from the Dollar while we watch is OVER,” Trump stated on social media Saturday.
The BRICS alliance includes China, Russia, Brazil, India, South Africa, Iran, Egypt, Ethiopia, and the UAE.
Escalating Tariff Threats
Trump, known for advocating tariffs, has ramped up threats in recent days. He warned BRICS nations against creating a new currency.
“We need a commitment they won’t replace the US dollar,” Trump wrote on Truth Social. “Otherwise, they’ll face 100% tariffs.”
He added, “They can find another sucker if they don’t comply.”
Some analysts believe Trump’s threats are part of his negotiating strategy. Allies like Senator Ted Cruz emphasize the “importance of leverage.”
Tariffs have been effective in the past, Cruz noted, referencing Trump’s previous trade negotiations.
On Friday, Canada’s Prime Minister Justin Trudeau visited Trump to discuss potential tariffs on Canadian goods.
Trump’s Treasury Secretary nominee, Scott Bessent, described the tactic as “escalate to de-escalate.”
How Tariffs Impact Trade
Tariffs are taxes on imported goods, calculated as a percentage of their value. For example, a $50,000 car with a 25% tariff incurs a $12,500 charge.
Trump views tariffs as tools to boost the US economy, protect jobs, and raise revenue. However, economists argue they burden domestic businesses and consumers.
Studies show Trump-era tariffs, many retained by President Biden, cost US consumers more than foreign exporters.
