President-elect Trump threatened countries in the BRICS bloc that they would leave the dollar regime with a 100% tariff, applying the same strategy he used against China, Mexico, and Canada. Trump remarked that the United States would not stand by and watch this bloc replace the dollar.
Trump will close the U.S. market to BRICS countries, declaring a 100% tariff if they abandon the dollar.
President-elect Trump has once again used tariffs as a weapon to maintain the U.S. dollar as the primary reserve and trade currency. Trump called on countries in the BRICS bloc, known for their de-dollarization agenda, to stop efforts to create a new monetary and payment system, threatening to impose a 100% tariff on their products destined for the U.S.
In a message posted on social media, Trump remarked that his future administration will not stand by and watch this happen. He declared:
We demand that these countries commit to not creating a new BRICS currency, nor supporting any other currency to replace the mighty U.S. dollar.
Furthermore, Trump noted that if these countries continue to develop their de-dollarization agenda, they will face a 100% tariff and 'should be prepared to say goodbye to selling into the great U.S. economy.'
Trump's statement seems similar to the statements focusing on Mexico, China, and Canada, using tariffs to force countries to capitulate and reach agreements with countries harmed by these measures.
However, the situation of BRICS may be slightly different, as Russia, one of the largest countries in the bloc, is not abandoning the U.S. dollar on its own but is forced to do so due to sanctions imposed due to Moscow's involvement in the conflict with Ukraine.
In November, President Putin referred to the situation of Russia, stating that they do not reject the dollar and have no intention of abandoning it. 'We are only being denied the use of the dollar as a payment tool,' Putin explained.
Trump's announcement has sparked speculation about the next steps of the upcoming administration, including bringing bitcoin into the equation and the possibility of lifting sanctions on Russia to allow the country to reapply dollar payment methods.
