New Delhi:
U.S. President Donald Trump has warned Brics countries on Friday, threatening 100 % of the exports of exports when trying to replace US dollars as an international trade.
Trump has repeatedly stated his attitude towards the execution and warns that Brics has to maintain the role of US dollars in global trade or face economic results.
“The idea that the BRICS countries are trying to leave the dollar is over while we are waiting and watching,” Trump wrote. “We hope to return to 100 % tariffs to return other currencies that do not create new BRICS currencies and replace strong US dollars from these hostile countries. I need a great US economy.
His post is almost the same as the one made on November 30, a few weeks after winning the 2024 presidential election.
BRICS Group -Brazil, Russia, India, China, South Africa -South Africa has been discussing how to reduce the dependence on US dollars for many years. Since the invasion of Ukraine, BRICS’s economic cooperation has been intensifying since the west sanctions were imposed in Russia. In recent years, BRICS has expanded to contain the United States of Egypt, Ethiopia, Indonesia, Iran, and the United Kingdom.
BRICS+has no common currency, but its members are promoting trade with local currency. At the 15th BRICS Summit in 2023, Russia’s President Vladimir Putin explicitly explicitly destroys BRICS states that “we must expand the national currency village and strengthen the cooperation between banks.” I called.
The push has gained more momentum at the BRICS Minister of Foreign Ministers held in Russia in June 2024, where the member states advocate the use of local currency in two countries and multilateral trade.
Despite concerns about dehydration, US dollars continue to be the world’s dominant preparatory currency. Last year, a survey by the Atlantic Council’s Geo Economics Center revealed that neither the euro nor the BRICS+government had reduced global dependence on the dollar.
Trump’s threat occurs when he is trying to maintain this rule. The use of his tariff as a leverage is not a new one. The 78 -year -old threat to BRICS+imposes tariffs on Mexico and Canada, the largest trading partner in the United States, following his recent promotion. Trump has argued that such tariffs are necessary to play illegal immigrants and drug trafficking, especially Fentanyl.
During his campaign, Trump calls India a “very large abuse” of trade policy, and has now expanded similar rhetoric to other BRICS+members. He argued that increasing tariffs in other countries could reduce taxes from American companies and workers and bring factories back to the United States.
But this approach is filled with skepticism.
Economist warns that customs duties can increase the cost of American consumers and companies, especially in industries that depend on imported raw materials.
