The BRICS countries see themselves as a counterpoint to the West – and are discussing a currency that competes with the dollar. US President-elect Trump dislikes this. He threatened high tariffs if the plans were pursued further.
US President-elect Donald Trump has threatened the so-called BRICS countries with tariffs of “100 percent” if they turn away from the dollar as an international means of payment and establish a competing currency. “We demand a commitment from these countries that they will neither create a new BRICS currency nor support another currency to replace the powerful US dollar,” Trump said on his online network Truth Social.
Otherwise, countries would face 100 percent tariffs “and face having to say goodbye to selling (their goods) into the wonderful U.S. economy.”
BRICS is a powerful confederation of states
In addition to the founding members Brazil, Russia, India, China and South Africa, the BRICS group now also includes Egypt, Ethiopia, Iran and the United Arab Emirates. At their summit in Kazan, Russia, in October, the heads of state and government of the BRICS countries predicted a significant increase in the group's influence in world politics and outlined projects such as a cross-border payment system. This is intended to help them trade with each other while bypassing the dollar-dominated global financial system.
Because of China's size, the BRICS currently represents around 45 percent of the world's population and 35 percent of the global economy – more than the G7 group of western industrialized countries. Russian President Vladimir Putin said more than 30 other countries wanted to become members. This also includes NATO member Türkiye.
US President can impose tariffs by decree
Tariffs are a central part of Trump's economic agenda. US law allows the president to impose tariffs on US imports by decree. The Republican wants to reduce the US trade deficit with higher tariffs and, in doing so, target all countries that have “ripped us off for years,” as he says.
A few days ago, Trump announced an aggressive trade policy with high tariffs against China and neighboring countries Canada and Mexico for his first day in office. He justified this with drug and people smuggling across the border. The announcement has stoked fears of a trade war between the US and two of its largest trading partners. Mexican President Claudia Sheinbaum warned that Trump's tariff plan would have devastating consequences for both countries and hinted at possible retaliation.
