Russia criticizes the threatening foreign policy of the United States as BRICS pushes efforts to reduce dependence on the dollar, pointing to the flawed policies of the U.S. and escalating global economic tensions.
Russia criticizes the 'threat diplomacy' of the United States in the context of the power struggle over the dollar.
The standoff regarding the global role of the US dollar has intensified, with BRICS countries preparing to deal with the recent threat from President-elect Donald Trump. Russian Deputy Foreign Minister Sergey Ryabkov clarified in an interview with Tass on Monday that the bloc does not intend to directly challenge the dollar's status but is responding to what he describes as the U.S.'s flawed economic policies. Ryabkov stated:
We are ready to explain to Trump, or anyone else, that we are not undermining the dollar. We are drawing conclusions from the irresponsible and fundamentally flawed policy that Washington has pursued.
His comments came amid growing concerns about BRICS's move to reduce dependence on the US currency.
Ryabkov noted that the dollar's dominance has been undermined not by BRICS, but by Washington's own policies. Quoting Russian President Vladimir Putin, he said, "They are biting the hand that feeds them," referring to U.S. strategies that, according to Ryabkov, harm global financial stability.
Experts have warned that Trump's proposal to impose a 100% tax on BRICS countries if they pursue alternatives to the US dollar could have significant global economic consequences. Such comprehensive tariffs could disrupt international trade, leading to increased costs for American consumers and businesses due to higher import prices.
This could exacerbate inflationary pressures, potentially prompting the Federal Reserve to adjust its monetary policy, including slowing the pace of interest rate cuts. Additionally, countries like Malaysia, an integral part of the global semiconductor supply chain, expressed concerns that these tariffs could cause disruptions, affecting industries reliant on these components. Furthermore, such aggressive trade policies could accelerate these countries' efforts to develop alternative financial systems, thereby diminishing the longstanding dominance of the US dollar in the global market.
Ryabkov criticized the U.S. for continuously using economic threats regardless of political leadership. "Overall, they have forgotten how to negotiate," he stated, arguing that BRICS's alternative economic measures are driven by necessity, not hostility.
Tensions escalated after Trump threatened to impose a 100% tax on goods from BRICS countries if they introduce a new currency or refuse the dollar. Ryabkov dismissed such warnings as signs of a larger diplomatic failure. He emphasized:
In the absence of any escape from the impasse that the United States has created for itself and others, we must create our own escape.
While BRICS remains open to dialogue, Ryabkov's remarks emphasize the commitment to pursue policies that address the long-standing frustration with U.S. financial activities, which could potentially set the stage for economic conflict.
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