Move away' from US dollar

 

Trump threatens BRIC nations with 100% tariff if they 'move away' from US dollar

WASHINGTON − President-elect Donald Trump threatened the BRIC group of emerging-market nations on Saturday, warning that he would impose 100% tariffs if they make any moves to undermine the U.S. dollar.

Trump's comment, made on his Truth Social platform, is in apparent response to efforts to challenge or replace the U.S. dollar as the primary global reserve currency.

The BRIC alliance, originally comprised of Brazil, Russia, India, and China, now includes five other countries: South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates.

On Saturday, Trump wrote, "The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER."

"We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy," Trump said. "They can go find another 'sucker!' There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America."

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At a summit of BRIC nations in October, Russian President Vladimir Putin accused the U.S. of “weaponizing” the dollar and described it as a “big mistake,” the Associated Press reported.

Collectively, the nine-country BRIC group accounts for 45% of the world's population. Turkey, Azerbaijan and Malaysia also have applied to become members.

Tariffs are essentially a tax or fee on all imported goods. Because tariffs are paid by importers, not by the originating countries, the additional costs typically are passed along to consumers. Trump's repeated threats to impose large, across-the-board tariffs have prompted anxiety, not just among American consumers, but also some of the biggest U.S. trading partners.