Donald Trump threatens 100% tariffs on BRICS nations and others challenging the U.S. dollar, escalating tensions over global financial dominance
On November 30, 2024, President-elect Donald Trump threatened to impose 100% tariffs on nine countries if they undermine the U.S. dollar. His warning was directed at nations within the BRICS bloc—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the UAE—along with Turkey, Azerbaijan, and Malaysia, all of whom have applied for membership
The U.S. dollar continues to be the world's most widely used currency in global business, despite numerous challenges to its dominance over the years. However, developing nations, including BRICS members, have grown increasingly frustrated with America's control over the global financial system, prompting calls for alternatives and reforms
Trump demanded that BRICS countries commit to not creating a new currency or supporting any alternative to the U.S. dollar. He warned that if these countries failed to comply, they would face 100% tariffs and lose access to the U.S. market
At the BRICS summit in October 2024, Russian President Vladimir Putin accused the U.S. of "weaponizing" the dollar, calling it a "big mistake." He emphasized that while Russia had not rejected the use of the dollar, it was compelled to seek alternatives due to the impact of U.S. sanctions
Russia is advocating for the creation of a new payment system that would bypass the U.S.-controlled SWIFT network. It aims to enable Russia to conduct trade with its partners while circumventing Western sanctions
Trump dismissed the possibility of BRICS countries replacing the U.S. dollar in global trade, stating there was "no chance" of it happening. He further warned that any country attempting to replace the dollar would have to "wave goodbye" to access to the U.S. economy
The tension underscores the growing divide between the U.S. and BRICS countries regarding the future of global finance. While BRICS nations are exploring alternatives to the dollar-dominated system, the U.S. remains steadfast in its determination to protect the supremacy of its currency in international trade
