The relationship between former U.S. President Donald Trump and Russian President Vladimir Putin, especially in the context of Trump threatening to impose a 100% tariff on BRICS nations if they pursue de-dollarization measures. This action could heighten tensions in U.S.-Russia relations and accelerate international efforts to reduce dependence on the dollar.
Key issues:
1. The BRICS de-dollarization push:
• The BRICS bloc (comprising Brazil, Russia, India, China, and South Africa) has long discussed creating a common currency to replace the U.S. dollar in international trade.
• Some countries in the bloc have begun trading agreements in their local currencies, gradually undermining the dollar's role.
2. Trump's response:
• Trump threatens high tariffs on BRICS nations to protect the dollar's status.
• This move reflects his hardline trade approach but also poses risks of harming global economic relations.
3. Impact on Trump-Putin relations:
• Although Trump has praised Putin and maintained a friendly relationship with Russia, recent statements could damage their 'friendship.'
• Putin has long supported de-dollarization efforts as a means to counter Western sanctions, putting his views at odds with Trump's interests.
4. Logistics and economic challenges:
• Creating a common BRICS currency faces many difficulties, including differences in development levels and economic structures among member countries.
• However, Trump's threats may accelerate BRICS' efforts, increasing the divide between the U.S. and these nations.
Global impact:
• If Trump follows through on his threats, global financial markets could be severely disrupted.
• Although the dollar remains dominant in international trade, the use of financial coercive measures could undermine trust in the U.S. and boost efforts to seek alternatives.
The outcome of this situation will depend on the ability of the parties to negotiate and consider long-term interests, not just in terms of economics but also in diplomacy and international security.