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Trump threatens 100% tariffs on BRICS nations over dollar challenge

US President-elect Donald Trump has promised to levy 100% tariffs on BRICS countries that want to supplant the US dollar in international commerce.

The warning was made in a statement posted to his official Facebook page on Sunday.

Trump, known for his "America First" stance, made it apparent that the United States would not stand idly by as the BRICS nations—Brazil, Russia, India, China, and South Africa—moved to undermine the US dollar's worldwide dominance.

In his statement, Trump declared that the thought of BRICS members abandoning the US dollar would not be permitted. He urged governments considering this step to reconsider, warning of the dire implications if they do.

Specifically, Trump promised to levy 100% tariffs on countries attempting to replace the US dollar, as well as to completely prohibit US commerce with them.

"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," Mr. Trump said. "If they do not comply, they will face 100% tariffs and should expect to say goodbye to selling into the wonderful U.S. economy."

Trump added, "They can go find another'sucker!'" There is no prospect that the BRICS will replace the US currency in international trade, and any country that does should say farewell to America."

The BRICS group was formed in 2009 with the goal of opposing what some countries, such as Russia and China, see as US global domination. In 2023, Russian Foreign Minister Sergey Lavrov proposed a worldwide campaign to minimize the usage of the US dollar in global trade and transactions.

The US dollar has remained the world's dominant currency, accounting for the majority of foreign exchange reserves as of early 2023.

As of 2023, the BRICS countries—Brazil, Russia, India, China, and South Africa—had been joined by six other countries, including Iran, Saudi Arabia, the UAE, Egypt, Argentina, and Ethiopia, in advocating for a shift away from the US dollar in favor of alternative currencies for trade.

Nigeria, which officially joined BRICS as a member country in October 2024, has increased its economic connections with the bloc, increasing its participation in the de-dollarization effort. At the same time, foreign capital inflows from BRICS nations increased by 189% in the first half of 2024, reaching $1.27 billion, up from $438.72 million in the same period in 2023.

Trump's strong reaction suggests that U.S. relations with other countries, particularly those in the BRICS bloc, may become more strained in the coming months.

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