31.01.2025 11:51
U.S. President Donald Trump announced that if the BRICS countries create a new currency that threatens the dollar, a 100% tariff will be imposed on those countries. The impact of this on trade relations between BRICS and the U.S. has become a topic of discussion.
US President Donald Trump reiterated his statements that if BRICS countries take a step to create a BRICS currency to replace the dollar, they will face "100 percent" tariffs.
THREATENED WITH A 100 PERCENT TAX INCREASE
Trump made a post regarding the issue on his Truth Social social media account. He stated that he would seek a commitment from BRICS countries that they will not create a new BRICS currency or support any other currency that could replace the US dollar, adding that "otherwise he would impose a 100 percent customs tariff on these countries" and that these countries would not be able to export to the US. Trump argued that BRICS countries are "trying to move away from the dollar" and that "the US will not stand by" as he expressed that these countries might find another "sucker nation" for themselves. He claimed that BRICS has no chance of replacing the US dollar in international trade or anywhere else, stating, "any country that tries this should say hello to tariffs and goodbye to the US."
BRICS HAS A SIGNIFICANT PLACE IN THE WORLD ECONOMY
The acronym "BRIC," which initially did not include South Africa, entered the literature in 2001 when British economist Jim O'Neill used it in an article highlighting the growth potential of Brazil, Russia, India, and China. The establishment of the union dates back to 2009 as an informal platform to balance the global dominance of the US and Western countries, initiated by Russia. With South Africa being invited a year later, the union adopted its current name, BRICS.
BRICS IS EXPANDING WITH NEW MEMBERS
BRICS, which includes Brazil, Russia, India, China, and South Africa as founders, has expanded with the membership of Egypt, Ethiopia, Iran, and the United Arab Emirates. With new countries joining in 2024 and Indonesia joining this year, the total number of members in BRICS has risen to 10, making it a significant player in the world economy. In a written statement made by the Russian Ministry of Foreign Affairs in December 2024, it was announced that Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda, and Uzbekistan would also join BRICS as "partner states" by 2025.