Trump Wields Threat of 100% Tariff Against BRICS Nations Over Currency Rivalry

At a recent announcement, Donald Trump warned of imposing a staggering 100% tariff on BRICS countries, asserting his determination to protect the US dollar from any potential competition.

In a bold communication via social media, U.S. President-elect Donald Trump has threatened to impose a staggering 100% tariff on nine nations comprising the BRICS bloc if they move to establish a currency alternative to the U.S. dollar. The announcement, made on Saturday, underscores Trump’s aggressive strategy to safeguard the dollar's preeminence in global trade. “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump stated.

The BRICS group includes major global players such as China and Russia, alongside Brazil, India, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates. During his campaign for the presidency, Trump has consistently advocated for imposing extensive tariffs, and his recent threats have raised concerns about escalating trade tensions.

Leaders in Brazil and Russia have floated the possibility of a BRICS currency to lessen reliance on the dollar; however, differing opinions within the alliance have hindered progress on the matter. “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 US dollar, or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy,” Trump emphasized on his Truth Social platform, even declaring, “They can go find another sucker.”

While some of Trump’s allies hint that these aggressive pronouncements are negotiation tactics rather than firm commitments, Republican Senator Ted Cruz highlighted the strategic importance of using leverage, referencing the immediate diplomatic actions taken by Canada in response to tariff threats.

In a striking move of diplomacy, Canadian Prime Minister Justin Trudeau visited Trump’s Mar-a-Lago estate on Friday, possibly to defuse concerns about a looming 25% tariff on Canadian imports. Trump's pick for Treasury Secretary, Scott Bessent, previously suggested that such threats are part of a broader negotiation strategy, indicating an intention to "escalate to de-escalate."

An essential component of Trump’s economic ideology, tariffs are intended as a mechanism to bolster the U.S. economy, retain jobs, and generate tax revenue. However, critiques from economists argue that the burden is often shifted onto American consumers rather than foreign producers, as domestic companies that import goods are responsible for paying the tariffs to the U.S. government. Many of the tariffs imposed during Trump’s initial term remain under President Biden's administration, with studies suggesting consumers bear the primary financial burden.