OAN Staff Blake Wolf
5:23 PM – Monday, December 2, 2024
President-elect Donald Trump revealed plans to enact a 100% tariff on BRICS countries, should they attempt to move away from utilizing the U.S. dollar within international trade.
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BRICS stands for Brazil, Russia, India, China, and South Africa, and is an intergovernmental organization created in 2006, holding member countries with emerging economies looking to collaborate on investment opportunities and increase global influence.
“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. They can go find another ‘sucker!’” Trump announced in a Truth Social post.
BRICS also expanded in 2023, inviting Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates into the group.
Some BRICS countries, led by Russia, have made attempts to create an alternative currency rivaling the U.S. dollar. However, other group members, like China and India, are still heavily invested in trading with the United States and fear the potential consequences of breaking away from the dollar.
Within 2022, China and the United States traded around $758.4 billion in goods-and-services, while trading an estimated $191.4 billion in goods-and-services with India in 2022.
“Trump’s recent electoral triumph was heavily fortified by his promise to impose harsh tariffs on foreign imports to the US, advocating for an aggressive 60% tariff on Chinese goods,” stated Stephen Innes, a managing partner at SPI Asset Management.
“This hardline approach on trade reflects Trump’s broader ‘America First’ economic policy, which aims to recalibrate global trade dynamics and reinforce US economic sovereignty. As the world watches, the potential for a global trade upheaval looms, setting the stage for a contentious start to Trump’s administration,” he continued.
A 100% tariff on BRICS countries would dramatically increase the cost of goods for members, and would increase US inflation while disrupting global trade.
“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,” Trump added.
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