Trump warns BRICS over Dollar rival plans
|President-elect Donald Trump warns BRICS nations against creating a dollar rival, threatening 100% tariffs and restricted access to the U.S. market.
Donald Trump, the incoming U.S. President, has issued a strong warning to BRICS nations over their plans to challenge the dominance of the U.S. dollar in global trade. The BRICS bloc, which includes Brazil, Russia, India, China, and South Africa, has been working on alternatives, including a new currency and the use of digital assets, to reduce reliance on the dollar.
In a statement on Truth Social, Trump demanded that BRICS nations abandon these plans. He warned of severe consequences, including 100% tariffs on goods and restricted access to the U.S. market, if the bloc continued pursuing a rival currency. “The idea that the BRICS countries are trying to move away from the dollar while we stand by is over,” Trump stated. He insisted that the U.S. would not allow any attempts to weaken the dollar’s position as the world’s reserve currency.
Trump’s stance aligns with his “America First” policy and campaign promises to protect the dollar’s global dominance. Reports indicate his team is already considering punitive actions against nations backing de-dollarization initiatives. His administration views the BRICS efforts as a threat to U.S. economic power, particularly as the bloc has expanded its membership and influence.
The BRICS group has been pushing for alternatives to the dollar since 2023, exploring mechanisms like using local currencies, the Chinese yuan, and blockchain-based stablecoins for trade. These measures could help member nations bypass Western sanctions and reduce dependency on the U.S.-led financial system.
At a recent summit, BRICS nations discussed ways to reshape international trade, including creating a new framework that avoids reliance on the dollar. The bloc also expanded its membership for the first time in over a decade, adding Iran, Saudi Arabia, the UAE, Ethiopia, and Egypt. With 34 other nations expressing interest in joining, BRICS aims to strengthen its economic influence and challenge the West’s dominance in global trade.
Market analysts suggest that these alternative currencies could allow BRICS countries to avoid U.S. sanctions, offering more flexibility in global transactions. However, Trump’s aggressive response signals a possible escalation in economic tensions between the U.S. and BRICS nations. His administration is expected to take a tough approach to counter these moves, which could reshape the global financial landscape.
Observers note that the U.S. and BRICS are on a collision course over the future of international trade. While the BRICS bloc seeks greater independence from the dollar, Trump’s hardline stance underscores the importance of protecting the U.S. economy and its role in global finance. With BRICS’ efforts gaining momentum, this conflict could define a new era of economic competition. Trump’s warning highlights the stakes for both sides as they navigate a rapidly changing global economy.
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