Trump threatens to impose 100% tariffs on BRICS countries, including India; requires ‘commitment’

US President-elect Donald Trump has warned the so-called BRICS countries that he will demand commitments from them that they will not create a new currency as an alternative to using the US dollar, and repeated threats to impose a 100% tariff.

Donald Trump promised during his election campaign that abandoning the US dollar would be costly for countries. (AP)

“The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is OVER,” Trump said in a post on his social media platform Pravda on Saturday.

“We demand a commitment from these countries that they will neither create a new BRICS currency nor support any other currency to replace the mighty US dollar, or they will face 100% tariffs and should expect to say goodbye with sales to the wonderful USA. Economy,” he added.

During his election campaign, Trump promised that abandoning the US dollar would cost countries dearly. And he has threatened to use tariffs to enforce them. Saturday’s threat has taken on new urgency as the president-elect prepares to return to power in January.

Trump and his economic advisers are discussing ways to punish both allies and adversaries who seek to engage in bilateral trade in currencies other than the dollar. Those measures include considering options such as export controls, currency manipulation fees and trade fees, according to people familiar with the matter.

Trump has long emphasized that he wants the U.S. dollar to remain the world’s reserve currency, saying in a March CNBC interview that he “won’t allow countries to abandon the dollar” because it would be “a blow to our country.”

The BRICS countries – collectively known as Brazil, Russia, India, China and South Africa – discussed the issue of de-dollarization at a summit in 2023. The backlash against the dollar’s dominance intensified in 2022, with the US leading efforts to impose economic sanctions. across Russia.

Economic advisers to Trump and his campaign, in particular, have talked about targeting BRICS.

Previously: Trump aides discuss fines for countries that de-dollarize

“There is no chance that BRICS will replace the US dollar in international trade, and any country that tries to do so should say goodbye to America,” Trump said on Saturday.

The president-elect has already rattled global markets ahead of his second term by threatening to impose an additional 10% tariffs on goods from China and 25% tariffs on all goods from Mexico and Canada unless those countries do more to stem the flow of illegal drugs. and illegal migrants across US borders.

Canadian Prime Minister Justin Trudeau met with Trump on Friday to discuss trade and border issues in an attempt to ease tensions between the two allied countries following the tariff threat.