Trump threatens to impose 100% tariff on BRIC countries if they abandon support for US dollar

President-elect Donald Trump issued a threat to the BRIC group of emerging-market nations, warning that he would impose 100% tariffs if they attempted to undermine the U.S. dollar as the primary global reserve currency. The BRIC alliance, consisting of Brazil, Russia, India, and China, along with five other countries, has been accused of challenges to the dollar. Trump demanded a commitment from these countries not to create a new currency or back any other currency to replace the U.S. dollar or face tariffs. He believes that the BRICS will not be able to replace the U.S. dollar in international trade. In response to Trump’s threats, some experts say that tariffs could increase inflation and lower growth in the United States. In 2018, Trump imposed tariffs on billions of dollars worth of imported products, claiming that the foreign countries pay the tariffs, which some studies have refuted. Additionally, Trump proposed tariffs against Mexico, Canada, and China if they do not cooperate with the U.S. on combating issues such as fentanyl drug overdoses and illegal immigration. Recent discussions with Mexico and Canada have been described as productive, but details are scarce, and assurances have not been given regarding the tariffs. Trump’s reliance on tariffs as an economic strategy has caused anxiety among consumers and trading partners alike.

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